| M&A can help enterprises adjust and supplement business resources to achieve the best economic scale,thereby reducing production costs and improving the operating efficiency of enterprises.M&A can promote the benign flow of production factors in the industry and enhance the vitality of industry development.M&A can improve the allocation efficiency of national resources and promote the completion of the era task of high-quality development.Enterprise performance is a result indicator that reflects the operating results of an enterprise over a period of time.It is a key basis for measuring the current status and future potential of an enterprise,and can provide reference for enterprise managers and external investors to make decisions.At this stage,China’s M&A transactions gradually show the characteristics of short interval and high premium,and the cases of listed companies’ continuous high premium M&A emerge endlessly in China.Against this background,this paper studies the impact of continuous high premium M&A on enterprise performance.The research results can warn the continuous high premium M&A that does not conform to the logic of enterprise development,thus promoting the healthy development of China’s M&A market and improving the efficiency of enterprise M&A.This paper first combs the existing literature in relevant fields,summarizes the research results of the impact of continuous mergers and acquisitions,high-price mergers and acquisitions,and goodwill impairment on corporate performance,initially builds the logical framework of this paper,and clarifies the research ideas of this paper.Secondly,according to the view of information asymmetry theory,there are differences in the information held by both sides of the M&A transaction,and the seller has the motivation to guide the buyer to pay a higher M&A premium.The synergy theory and overconfidence theory believe that if the enterprise managers have overly optimistic expectations of the synergy effect of M&A resources,they are more likely to launch high premium M&A continuously and form high goodwill at the level of financial statements.According to the above three theories,it provides motivation explanation for the implementation of continuous high premium mergers and acquisitions.In the case analysis part,this paper selects Dongmu Shares as the research object to conduct a comprehensive analysis of the changes in the long-term and short-term performance of the company before and after continuous high-price mergers and acquisitions.At the same time,as the direct product of continuous high premium mergers and acquisitions,the value of goodwill is directly reflected in the company’s financial statements.Therefore,in the research process,this paper also considers the impact of changes in goodwill on corporate performance,and studies the impact of continuous high premium mergers and acquisitions on corporate performance.Through research,this paper finds that:(1)The short-term market reaction of each M&A event is different.The market held a positive attitude towards the first high premium M&A.However,with the increase of the number of mergers and acquisitions,the negative reaction of the market has increased.(2)The financial performance of the company decreased.The profit conversion ability of production and operation activities has declined,and the profitability has declined significantly;The liquidity of assets has decreased,the scale of debt has increased significantly,and the solvency has been seriously damaged;The operational efficiency of production factors is not significantly improved,and the operational capacity needs to be improved;The growth rate of net profit fluctuates greatly,and the development ability fluctuates significantly.(3)Non-financial performance changes are not uniform.The R&D capability is enhanced and the transformation rate of R&D achievements is accelerated;The sales volume and market scale have not significantly improved,and even the growth rate has been inhibited;(4)Goodwill mainly affects the company’s performance through impairment.The "accumulation" of goodwill has no obvious impact on the company’s financial performance,but when goodwill is impaired,it will cause the company’s stock price to fluctuate and its value to decline.In view of the above research results,suggestions are put forward:(1)Relevant regulatory departments should give full play to the role of external supervision.Establish a sound long-term M&A mechanism and strengthen the supervision of information disclosure on the performance of M&A transactions.(2)The intermediary organization should give full play to its auxiliary role.Timely identify potential risks and objectively evaluate the acquisition target.(3)Enterprises should pay attention to the integration efficiency of M&A resources.Correct the attitude towards mergers and acquisitions,and strive to achieve effective coordination between resources and reduce the waste rate of resources.(4)Managers should improve their ability and remain rational at all times.Improve their own management level and risk awareness,and objectively evaluate the necessity and feasibility of mergers and acquisitions. |
