Market Value Management In Mergers And Acquisitions Of Listed Companies

On May 9,2014,the State Council issued Several Opinions on Further Promoting the Healthy Development of the Capital Market,which clearly proposed for the first time that "encourage listed companies to establish a market value management system",encourage market-oriented mergers and acquisitions,expand financing channels for mergers and acquisitions,and enrich payment methods for mergers and acquisitions.Since then,the market value management of listed companies in China has entered a new standardized and institutionalized stage.However,in recent years,some listed companies have many misunderstandings about market value management.In the name of market value management,they manipulate the stock price by means of illegal and illegal means such as speculation on market hotspots,control of the content and rhythm of information disclosure,and joint operation with intermediary agencies in order to make profits for the major shareholders of listed companies,thus causing a series of problems.Since its listing,Fukong Interactive Company has planned or implemented several major asset restructuring,and realized the transformation of its main business through cross-border mergers and acquisitions.However,Fukong Interactive Company has been listed in December 2013 and delisted in July 2021,but it has become the first share of A-share game delisted in 8 years.What is the market value management status,way and effect of its implementation in mergers and acquisitions? What can we learn from it? These are all worth discussing.Therefore,the article conducts a research on the relevant mergers and acquisitions of Fukong Interactive Company from 2014 to 2018.First,it combs the relevant literature at home and abroad,then expounds the concept and relevant theories of market value management,and then discusses the situation of Fukong Interactive Company at that time in detail,with the help of the market value management method and motivation of M&A.The article also uses the event study method to understand the correlation between its stock price fluctuations and M&A events,and the financial index analysis method to summarize and evaluate its financial situation and operating results,so as to evaluate its market value management problems,and finally summarizes the case and draws relevant conclusions.The study found that some listed companies,such as Fukong Interactive Company,manipulated the real market value of the company in the name of market value management by hyping the hot spots in the market,issuing false M&A announcements,disclosing false information,financial fraud and other acts,cheating and damaging the interests of small and medium-sized investors.This paper puts forward a clear idea on the current situation of market value management of listed companies in China’s M&A "deviation",which enriches the empirical data of false market value management,and helps all participants in the capital market to more comprehensively understand and evaluate the real intention and potential risks of listed companies’ market value management M&A activities(especially cross-border M&A),hoping to provide valuable reference for listed companies to implement market value management,It also provides reference for the government and relevant departments to further establish an effective and reasonable market value management and supervision mechanism and promote the improvement of securities market supervision.