Research On Continuous Mergers And Acquisitions And Their Impacts Based On Managers’ Overconfidence

Since the 20 th century,M&A has continued to be carried out all over the world,and after the "Baoyan Storm",Japan also caused a wave of M&A.Mergers and acquisitions have become more frequent,especially since the stock trading reforms of 2005,and many companies have made many mergers and acquisitions in a relatively short period of time.Starting with the emergence of M&A activities in capital markets,academic researchers have conducted research on the motives,processes and performance of corporate M&A activities.As M&A activity progressed,scholars began to focus on the myriad of failed mergers and acquisitions,especially ongoing mergers and acquisitions,and business owners remained enthusiastic about mergers and acquisitions.Is a person.As a result,scholars have begun to realize that among the many factors that influence M&A decision-making and performance,a special group of executives is arguably the key factor.The psychological characteristics and irrational behavior of business owners have a significant impact on corporate M&A activities.Significant impact.Therefore,research on ongoing mergers and acquisitions from the perspective of management overconfidence has significant theoretical value and practical importance.In this context,this article hopes to help companies pay attention to manager overconfidence factors in the process of mergers and acquisitions and reduce the risk of corporate mergers and acquisition failures.Study ongoing mergers and acquisitions of Tianshen Entertainment based on.In this paper,we will focus on Tianshen Entertainment,organize the survey results related to continuous M&A and overconfidence of managers,analyze the current state of the game industry in Japan and the outline of Tianshen Entertainment,and clarify the entire Tianshen process.To Continued mergers and acquisitions of entertainment.Second,Tianshen Entertainment’s managers are judged to be overconfident in terms of their personal background,deviations in corporate profit forecasts,and their relative salaries.Third,we use event research and comparative analysis to investigate the impact of manager overconfidence in three aspects:merger process,market performance,and financial performance.Finally,this article draws conclusions based on the results of case analysis and makes relevant suggestions.The main findings of this paper are: First,through multiple indicators,Tianshen Entertainment has overconfidence in management behind ongoing mergers and acquisitions.Second,the continued mergers and acquisitions of Tianshen Entertainment had no positive effect on the company.Therefore,ongoing mergers and acquisitions by management who are overconfident that the company will not only fail to bring positive stimulus to the company,but can even have a significant negative impact on the company’s development.Therefore,the following proposals and enlightenment are proposed.:(1)Reasonable estimation of the impact and risk of the merger and acquisition before the merger and acquisition,and strengthening of integration of corporate resources after the merger and acquisition.Through repetitive discussions at corporate meetings,you need to be good at demonstrating the motivation for ongoing mergers and acquisitions and timely integrating resources into a third-party independent valuation body after the mergers and acquisitions are completed.(2)Strengthen the management of the company in order to reduce the adverse effects of overconfidence of the management.Strengthen management learning concepts,strengthen management mental state assessment,adopt different tactical incentives and evaluation systems for managers with different leadership styles,and employ senior management duties and authorities Properly relax the range and manage it effectively.(3)Investors and regulators need to be aware of mergers and acquisitions of companies and overconfidence of management.Investors need to pay attention to the behavior of business owners,especially the irrational behavior that can occur.Regulators take into account the factors of management behavior when managing and guiding a company,strictly control M&A thresholds,and manage mergers and acquisitions.We will carry out a risk assessment after the merger.