Research On The Listed Company Of Performance Commitment And Compensation In Enterprise M&A

Since 2015,along with the increasing number of M&A activities,performance co mpensation commitments(for gambling agreements),as a substantive option model,ha ve played an increasingly important role in M&A activities,especially with M&A acti vities.The high valuation,high premium and high reputation have attracted the attenti on of listed regulators and investors.The original intention of enterprises to sign perfo rmance compensation commitments is to reduce the risk of mergers and acquisitions,r educe the impact of information asymmetry on the mergers and acquisitions of listed companies,better serve the enterprises and safeguard the vital interests of the majority of small and medium shareholders.However,in recent years,more and more M&A explosions have caused us to doubt whether the performance compensation commitmen ts have safeguarded the interests of the majority of small and medium-sized sharehold ers and promoted the improvement of the company's operating performance,which is ineffective or even harming the interests of the majority of minority shareholders.Ben efits become an arbitrage tool for major shareholders and related parties.In the Chinese capital market where M&A activity is increasingly active,all aspe cts of M&A and restructuring need to be checked by the listing regulators.How to ef fectively carry out mergers and acquisitions,and make effective use of the performanc e compensation commitment mechanism is a topic we cannot avoid.In view of this,t his paper takes the all-line education of online education concept stocks listed on the GEM in 2014 as the background background,and analyzes the application and effect of the performance compensation commitments in the merger and reorganization activit ies since its listing.Through research,it is found that:(1)performance compensation commitment may become a tool to push up valuation and stock price,induce incentiv es for listed companies' earnings management and short-selling behavior of major shar eholders.(2)Performance compensation commitments can have a certain incentive effe ct on major shareholders and management in the short term,and can also produce pos itive announcement effects in the capital market.However,relying on performance co mpensation can not effectively improve the long-term profitability of listed companies and make compensation.Nor can it play a practical protective role for small and med ium shareholders.In this regard,this paper proposes corresponding proposals to remin d investors to be rational and vigilant when investing,and not to rely too much on p erformance compensation commitments to identify high-quality assets.