The Impact of Mergers and Acquisitions Payment Methods on the Performance of Cultural Enterprises Acquisition

Abstract

This study will focus on the current development of the cultural industry, utilizing the sample of A-share cultural corporate mergers and acquisitions to delve deep into the relationship between the payment methods and performance of cultural M&A. This study will review relevant domestic and international literature, and select A-share listed company cultural industry M&A cases from 2001 to 2019 that meet the screening criteria from the Bloomberg database as samples, focusing on the relationship between payment methods and M&A performance in the cultural industry M&A process, aiming to provide decision-making recommendations for the payment stage of corporate M&A. In terms of quantified performance, this study will focus on long-term performance, thus the performance assessment time interval is set as the three years before and after the M&A. And based on the relevant financial indicators available during this period, a multi-factor model will be constructed and tested using sample data. Through this study, we can discover that during the M&A process, stock payment is more favorable for the long-term performance improvement of acquiring companies compared to cash payment.