Research On The Application And Improvement Of Performance Commitment In The Merger And Acquisition Of Zhangqu Technology

In the current market environment,more and more enterprises achieve strategic development and improve market competitiveness through M & A activities,which has become a common phenomenon in the capital market.As an activity in the capital market,M & A has the characteristics of high information asymmetry and high risk.In the process of M & A,both sides of M & a attempt to use different intermediate adjustment mechanisms to prevent M & A risks and promote the fair and smooth development of M & A.under such background demand,performance commitment agreement emerges as the times require.The birth of performance commitment is considered as an effective mechanism to prevent M & A risks by the M & A parties in the capital market.However,with the frequent occurrence of non-standard events of performance commitment in M & A,the "sequelae" caused by them has become increasingly prominent,which eventually leads to serious economic consequences such as litigation,equity disputes,business performance decline,etc.,and performance commitment has become an empty talk.Therefore,both sides of M & A should correctly and reasonably use the internal mechanism of performance commitment,and recognize the advantages and disadvantages of performance commitment,which has a direct impact on the rational use of performance commitment in M & A and maximizing the role of performance commitment in M & A.At the same time,from the micro level,it can promote the smooth development of M & A,meet the interests of both sides of M & A,and from the macro level,it can improve the M & a market in China from the perspective of the third party mechanism,so as to promote the continuous development and growth of the capital market in China.At present,China’s game industry is developing rapidly.Because of its characteristics of high growth and high profitability,game enterprises have become a hot target for enterprises to achieve strategic layout in the capital market.This paper selects zhangqu technology,the leading enterprise in the game industry,as the case study object,to explore the performance commitment signed by both parties in the merger and acquisition,combined with its design and application process and results,to analyze the serious economic consequences caused by the failure of the target company’s performance commitment,combined with the development of the merger and acquisition in the current capital market in China and the performance commitment agreement In order to provide theoretical guidance and practical referencefor enterprises in the M & a market,this paper makes an in-depth study on the regulations and application mechanism of performance commitment signed in the M &A and reorganization of case companies.First of all,the article combs the relevant literature of performance commitment of domestic and foreign scholars,and lays the foundation for the practical application of performance commitment in the process of literature sorting.Secondly,the paper explains the concept of performance commitment and the composition of related terms,and establishes a theoretical framework for the application of performance commitment in this paper,combining with information asymmetry theory,M & a valuation theory,principal-agent theory,incentive theory and other related theories.Thirdly,this paper makes an in-depth analysis of the application of performance commitment in the two M & A and restructuring activities of zhangqu technology.Starting from the serious economic consequences of its failure in performance commitment,this paper analyzes the specific problems and causes of the application of performance commitment in M & A from the three perspectives of performance objectives,compensation schemes and reward consideration.Finally,combined with the detailed analysis of the case company,this paper puts forward relevant improvement suggestions for the rational design and rational use of performance commitment in M & A,trying to provide some enlightenment and help for the M & a market in China.