Study On The Effect Of Performance Compensation Commitment On Corporate Governance

With the development of China's capital market,the phenomenon of mergers and acquisitions by means of major asset restructuring has frequently appeared.In order to safeguard the interests of all shareholders,especially small and medium-sized shareholders,the CSRC has issued a number of laws and regulations on mergers and acquisitions of listed companies.The performance compensation agreement is widely used in listed companies as one of the stakeholders' interest protection tools.Although the performance compensation commitment agreement enables listed companies to improve their operations and enhance their market competitiveness,there are widespread phenomena in which the industry has repeatedly failed to meet standards and its implementation rate is low.Based on the above economic market status and policy supervision,this paper selects the case that can reflect the phenomenon that the performance commitment is not up to standard,that is,taking China sedurity Co.LTD acquisition and acquisition of Feile shares as an example,researching and purchasing the performance commitment plan and the design principle.And analyze why it is unable to meet the commitment requirements.Further discussion on whether there is a governance effect between the listed company and the merger and acquisition,and analysis of the impact on the company's operation after the listing,summed up and draws inspiration.In combination with the current status of current M&A performance commitments,the corresponding recommendations are made for actual problems.The innovation of this paper lies in the novelty of the case in this paper,and there is no relevant literature research yet.As one of the companies whose performance is not up to standard,China sedurity Co.LTD is beneficial to analyze the reasons for the failure of the performance commitment and the governance effect brought to the listed company.Finally,summarizing and summarizing the research conclusions,combined with the case company's performance commitment and the corresponding recommendations on corporate governance issues.