Performance Evaluation of a Company's Merger on the STAR Market from the Perspective of Performance Commitments

Abstract

The Science and Technology Innovation Board (STAR Market), as a nascent capital market segment dedicated to supporting technological innovation enterprises, has not only significantly streamlined the financing processes for technology-driven companies but also substantially enhanced their market competitiveness. With the backing of capital, these enterprises have demonstrated stronger merger and acquisition capabilities, enabling more efficient integration of market resources, acquisition of cutting-edge technologies, and assimilation of managerial expertise. This has paved new avenues for technological innovation and industrial upgrading. This article delves into the latest trends in merger and acquisition activities among STAR Market-listed companies within the Chinese capital market, with a particular focus on the case of Company A's acquisition of Company B. The evaluation of the short-term merger and acquisition performance employs the event study method, while the long-term performance is assessed through financial indicators and other metrics tailored to the characteristics of STAR Market enterprises. The aim is to provide an in-depth analysis of the actual impact of this merger event through the evaluation of performance outcomes.