Research On The Motivation And Performance Of HNA Group's Continuous Mergers And Acquisition

Nowadays,enterprises are more and more inclined to carry out multiple mergers and acquisitions in a short period of time,which seems to have become a new strategy for enterprises at present.HNA Group also tries to take this shortcut to achieve the goal of expanding the company scale,improving the industrial chain and achieving synergy.Since its establishment,large and small M&A activities have become the norm of HNA,which has changed from a single shipping company to a large multinational enterprise group.However,the good times did not last long.After 2015,blind continuous mergers and acquisitions caused HNA Group to be frequently exposed by the media from 2017.In the end,HNA could not stand the pressure of debt and applied for bankruptcy and reorganization in 2021.Why did HNA succeed in continuous mergers and acquisitions,but failed because of continuous mergers and acquisitions?From the perspective of traditional finance,companies often take past experience as the main consideration when making merger and acquisition decisions,and this decision-making behavior is usually not completely rational.At this time,behavioral finance combined with psychology has been widely concerned and applied.This new financial theory has made great contributions.In the past twenty years,four scholars,including Daniel Kahneman and Vernon Smith,have successively won the Nobel Prize in Economics.With the in-depth study of many scholars,managers’ overconfidence has gradually become an important field of behavioral finance,which is increasingly used to explain managers’ various financial behaviors.Under the catalysis of managers’ overconfidence,the company’s investment behavior shows more and more irrationality.Therefore,it is an important research direction to explore the irrational behavior of enterprises caused by managers’ overconfidence.In this paper,the motivation and performance impact of continuous mergers and acquisitions of HNA Group are analyzed in detail by case study.In the introduction,this paper will first introduce some theories of managers’ overconfidence and continuous mergers and acquisitions,and then judge whether there is managers’ overconfidence in HNA Group by four measuring methods: enterprise prosperity index and entrepreneur confidence index,mainstream media reporting method,managers’ personal characteristics and integration of two positions.On this basis,this paper analyzes the influence path of continuous M&A of HNA from the perspective of M&A expectation,the choice of M&A objects and the financing methods adopted in M&A..Finally,through the performance analysis,it is concluded that this psychological deviation will have a negative impact.There are many factors that can improve managers’ confidence index,and the troubles brought by the decisions made under this mentality to HNA Group are already in front of us.At last,this paper puts forward some targeted suggestions for this case,hoping to bring enlightenment to the decision makers of mergers and acquisitions in China.