M&a Market Performance from The Perspective of Performance Commitment

Taking CDXJ's Acquisition of XiangJiang Techology as an Example

Abstract

 In recent years, under the influence of the epidemic environment, the growth rate of the total output value of the construction industry and the IDC industry has gradually declined. M&a is an important means to realize the transformation and upgrading of enterprises and integrate high-quality resources. In M&A cases, there are many cases of signing performance commitments, which shows the confidence of the target party and can appropriately avoid the risks of the M&A party. By analyzing the case of Shanghai CDXJ Digital Technology Co.,LTD.'s acquisition of Xiangjiang Science and Technology Ltd., this paper uses the event study method and Tobin's Q value method to discuss the changes in the market performance of the acquirer under the condition of signing performance commitments, and draws the following conclusions: In terms of short-term market performance, signing performance commitments and releasing announcements upon completion of performance commitments will release positive signals to the market, which will have a positive impact on the short-term market performance of the acquirer. In terms of long-term market performance, investors are optimistic about the development of enterprises during the performance commitment period, but after the expiration of the performance of enterprises, investors have doubts about the development of enterprises, long-term market performance is poor, showing a downward trend.