Research On The Incomplete Performance Commitment And The Interest Protection Of Small And Medium Investors In Qingdao Kingking M&A Series

With the increasingly fierce market competition,more and more enterprises participate in the wave of merger and reorganization.Through mergers and acquisitions,listed companies can obtain more assets and technology,so as to improve the level of production and sales of enterprises.In addition,they can also expand the market scale,help enterprises get rid of the current management difficulties and achieve leapfrog development.However,the change of corporate capital structure in the process of mergers and acquisitions is likely to affect the interests of small and medium investors.In order to solve this problem,the concept of performance commitment was first proposed in the Management Measures for Material Assets Reorganization of Listed Companies issued by China Securities Regulatory Commission in 2008.In the practical application process in recent years,Performance commitment is widely used as an additional term of merger and reorganization agreement.Although small and medium investors are one of the participants in the capital market,they are in a position of information weakness,so it is often difficult to distinguish the real operation situation behind the company.They blindly believe in the company with high performance commitment,once the performance commitment can not be realized,their interests will be seriously damaged.Therefore,whether performance commitment can protect the interests of small and medium investors is the purpose of this paper.To help small and medium investors see the real value behind the listed companies through high performance commitment is the key to protect their interests,and it is also an urgent problem to be solved at present.This paper takes Qingdao Kingking on being the case as the research object,on the basis of relevant research methods and theories,respectively from the market indicators,financial indicators and goodwill three Angle analysis,relatively comprehensive introduction to the Qingdao jin wang performance effects on the interests of small and medium-sized investors promise unfulfilled.The results show that the signing of performance commitment will have a positive effect on the company’s operating performance and financial status in the short term,and the interests of small and medium investors will increase accordingly.If the acquired company can fulfill its performance commitment,it will also send a positive signal to the capital market.At this time,the company can still bring positive income to small and medium investors.Once the acquired company fails to fulfill its performance commitment,the company’s goodwill is likely to face a huge impairment.Small and medium investors often expect the company’s operating performance to decline further and sell their stocks to avoid greater losses.At this time,the interests of small and medium investors will suffer serious damage.Therefore,small and medium investors should not blindly believe in high performance commitment,and should adhere to the principle of caution when investing.In addition to seeing the positive role of performance commitment,they should not ignore the risk of incomplete performance commitment.On the one hand,both parties of merger and acquisition should disclose relevant information publicly in a timely manner;On the other hand,relevant regulatory authorities should strengthen law enforcement and improve relevant laws and regulations.