Study on the Impact of Performance Breach on the Performance of Listed Companies - Taking Sunrise Oriental's Merger and Acquisition of Shuaikang Electric as an Example

Yang Liu ； Yuanchun Yu

《Frontiers in Economics and Management》 4卷9期 (2023/09) Pp. 63-70

https://doi.org/10.6981/FEM.202309_4(9).0007

摘要

In mergers and acquisitions (M&A) and reorganization, signing performance compensation clauses is an important way to ensure the success of M&A and an important way for both parties to M&A to express their sincerity, but due to factors such as poor decision-making and excessive valuation, performance loss of promise occurs time and again. This paper adopts the case study method and the Z-value early warning model analysis method to analyze the impact of the occurrence of performance failure of Shuaikang Electric on the market performance and financial performance of Sunrise East. The results conclude that in this case, the performance failure had a negative impact on the market performance of the main merger party, and the overall stock returns showed a downward trend in the seven days after the performance failure announcement, but the impact on the financial performance was not obvious. Finally, suggestions are made in terms of increasing performance assessment indicators and post-merger integration, hoping to provide some reference to the M&A market and reduce the occurrence of performance lapses.

關鍵字

Listed Companies ； Mergers and Acquisitions (M&A) Reorganization ； Performance Commitment ； M&A Performance

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