Research On The Impact Of Performance Compensation Commitment On M & A Synergy

In recent years,under the rapid development of China’s market economy,the number of mergers and acquisitions in China’s capital market has been increasing,and the scale has become larger and larger.Therefore,for the purpose of protecting the rights and interests of investors and effectively motivating the management of the enterprise,it is particularly important to introduce an innovative form of M & A contract into the performance compensation commitment in M ??& A transactions.However,there are still a series of problems in China’s M & A market,such as failure to meet performance commitments,arbitrarily changing compensation plans,and refusal to fulfill performance commitments.These chaos not only caused huge losses to the acquirer,but also caused serious damage to the interests of small and medium shareholders,and adversely affected the healthy development of China’s capital market.Therefore,it is significant to study the application of performance compensation commitments in corporate mergers and acquisitions.In this context,this article first summarizes the research results on performance compensation commitments and M & A synergies at home and abroad,such as the accounting treatment of performance compensation commitments and implementation effects;the meaning,classification and evaluation methods of synergy effects;How performance compensation commitments affect the synergy of mergers and acquisitions.Then briefly introduced the related theories involved in the article.Then returning to the specific case of CTS International Logistics Corporation Limited,a brief description of the two parties to the transaction,namely CTS International Logistics Corporation Limited and China Special Logistics.After introducing the motivations for signing performance compensation promises and the design and completion of performance compensation commitments during the completion of the China Merchants Logistics M & A,the detailed analysis of performance compensation commitments on M & A synergies before and after the commitmentperiod What kind of impact is there? The measurement of M & A synergies is mainly defined at the level of changes in corporate performance,which is specifically divided into two major areas: the synergy of accounting performance and market performance.For market performance,the event research method is used to study the impact of this event on stocks.BHAR and CAR methods are used to quantitatively measure long-term market performance and short-term market performance.The measurement of corporate accounting performance is mainly based on operating synergy,Management synergy and financial synergy.Through case analysis,this paper finds that performance compensation commitments will enhance the synergy of M & A to a certain extent.From the subdivided time period,performance compensation commitments will increase the company’s stock price and corporate performance during the commitment period,bringing synergies in operations,finance and management.But with the end of the commitment period,performance compensation commitments have not improved the company’s continued profitability.Finally,based on the conclusions obtained in this article,suggestions are made on how to use performance compensation commitments rationally and how regulators can improve performance commitment systems.