Research On The Impact Of Performance Commitement On M&A Performance Of Listed Company

With the rapid development of China’s economy,more and more listed companies optimize their resource allocation,extend the industrial chain and expand the scale of the company through mergers and acquisitions,so as to improve their development capabilities and continue to bring benefits to the majority of investors.A large number of practical cases have attracted the attention of scholars.How to evaluate the impact of M&A on listed companies,what the influencing factors are,and how the market reaction are all hot topics of research.In mergers and acquisitions,in order to reduce transaction risks caused by information asymmetry,both parties usually sign performance commitment agreements,in which the acquired party will make certain performance commitment to the underlying assets within a period of time after the acquisition.If the performance commitment is not completed,cash or shares will be compensated as agreed.This thesis considers whether m&a event can bring the expected ideal income for listed companies,the impact of performance commitment on M&A event,the size of commitment performance amount,the realization of commitment and other reactions in the capital market.This thesis chooses huahong Technology Company’s m&a events as the research object,through the way of case analysis to find the answer,to study the specific case of m&a performance.This thesis first introduces the background and significance of the research,and introduces the working ideas and methods.Secondly,it reviews and collates relevant literatures on M&A performance and the influence of performance commitment on M&A performance,forming a certain theoretical background.Then this thesis introduces the basic information,the brief information of previous mergers and acquisitions and the details of performance commitments of Huahong Technology based on various quarterly reports,annual reports and announcements of related events since its listing.In addition,the influence of whether there is performance commitment,the size of performance commitment and the realization of performance commitment is studied by using event study method and accounting index study method.Finally,the conclusion is drawn that,on the whole,the m&a performance with performance commitment is better,the level of commitment level causes little difference in M&A performance,and the timely completion of performance commitment is recognized by the market,and the M&A performance is better.