Research On The Motivation And Economic Consequences Of Performance On Gambling Cancel

In recent years,high premium mergers and acquisitions have become a hot topic and a new normal in the financial securities market.As a "valuation adjustment tool",the performanceto-betting agreement grants both parties the rights and obligations to reduce transaction risks,incentivizes business management,and achieves a win-win situation for both parties.It has also been adopted by both parties in the M&A boom.This paper takes cross-industry mergers and acquisitions of typical medium-sized real estate companies as the research object.First,it summarizes and summarizes the concepts of performance commitment,merger premium,and synergy through literature research,and lays a theoretical foundation for case analysis.The process of canceling performance-based gambling agreements;an in-depth analysis of the motivations for Wanye’s cancellation of performance-based gambling,mainly due to the changes in the photovoltaic new policy that have had a huge impact on the production,sales,R&D and valuation of Kastom,and secondly due to circumvention The risk of high goodwill impairment is again due to the fact that the performance target set by the gambling agreement is far beyond the operating conditions of Kai Shitong itself,and finally because the high premium acquisition has not formed management,operation and financial synergy effect.Judging the economic consequences of cancellation by short-and long-term market responses,using the event research method to compare the market response of signing performance-to-betting agreements and cancelling performance-to-betting agreements,it was found that the cancellation of performance was positive for the market at the time of gambling,and The market’s poor response when signing performance-to-betting agreements further illustrates that the cancellation of performance-tobetting is a result that capital markets are happy to see.The EVA evaluation method was used to analyze the changes in economic value added when gambling was cancelled.The final result showed that the cancellation of performance on gambling agreements was a move to reverse the situation and benefited the development of the enterprise.In short,the cancellation of performance had a positive impact on the enterprise itself.This article aims to help China’s capital market to deepen its understanding of performance-based gambling,optimize the use of performance-based gambling agreements,and propose to the supervisory authorities to improve the performance-based gambling agreement system Strengthen supervision,make recommendations to the M&A party to set reasonable performance-based gambling agreement targets and diversify set-up gambling agreement indicators.