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The Study On The Financing Instruments Choice Of The Domestic Enterprises’ Mergers And Acquisitions

Posted on:2013-07-24Degree:DoctorType:Dissertation
Country:ChinaCandidate:S R WangFull Text:PDF
Abstract/Summary:PDF Full Text Request
Mergers and acquisitions(M&A) transaction acts as a property, generally need hugesums of money paid to complete the transaction process, and the acquisition of themajority of the initiator by a large number of external financing to quickly raisefunds.Therefore, It is very import to the M&A transaction whether the M&A financingarrangement is reasonable. Traditionally, the financing pefermance of M&A is seen as theoptimization problem of the firm’s capital structure. With the development of the modernfirm theory, it is recognized that the corporate governance effects of external financingcontract will have a different impact on the financing pefermance of M&A.Firstly, the conclusion is given that the general law of the financing pefermance ofM&A of firms with different corporate governance structure: The financing pefermanceM&A should be consistent with the financing Pecking Order theory in the "classical firm”;If the shareholders still control enterprise in the modern enterprises with the separation ofownership and management, the final choice of M&A financing depends on the balance ofthe interests of the shareholders, the manangers and the external investors; If the actualcontrol of the enterprises is grasped by the managers, the financing choice of M&A woulddepend on the managers’ specific motivation of M&A.Then, the Analysis is respectivelygiven on the M&A’s financing pefermance of state-owned listed companies and privatelisted companies in China.“Government intervention” and “Internal person control” makethe managers of state-owned listed companies more tend to borrow from state-ownedbanks for the M&A,with the lack of participation in corporate governance of state-ownedbanks. Further, the empirical research is made that is on the negative impact of M&A’sfinancing preference for debts of state-owned listed companies.Finally, the thesisrecommends that convertible bonds and policy financial would be the better financingtools for the M&A with special motivation of the state-owned listed companies in China toimprove the efficiency of China’s M&A financing.The thesis includes seven chapters, and main content of each chapter are as follows:The first Chapter mainly introduces background of the research and significance of thepaper; defines the key concepts involved in the paper; specifies the important methods ofthe research, briefs the research logic of the text and describes the main innovations of thepaper. Chapter2is literature review, including the related theories of corporate finance theory, M&A motivation theory and performance analysis. Chapter3gives the general lawof the financing pefermance of M&A of firms with different corporate governancestructure. Chapter4analyses respectively the M&A’s financing pefermance ofstate-owned listed companies and private listed companies in China. Chapter5does theempirical research on the negative impact of M&A’s financing preference for debts ofstate-owned listed companies in China. Chapter6and Chapter7give some advices toimprove the efficiency of M&A financing in China.
Keywords/Search Tags:Listed companies, Mergers and acquisitions, Financingpefermance of M&A, Motivation of M&A
PDF Full Text Request
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