Merger And Aacquisition Investment And Financing Behavior Of Listed Companies In China Based On Behavioral Corporate Finance

Merger and Acquisition of the stock market is an eternal subject, with the continuous advance of globalization, the global M & A activity increasing. In our country, by the WTO accession and the impact of state-owned enterprise reform, M & A activity reached unprecedented high tide. However, mergers and acquisitions in the enterprise to provide a shortcut to rapid expansion has also brought enormous risks.M&A Activity in reality there are many unusual phenomenon of capital allocation as well as non-rational decision-making mergers and acquisitions. M&A because of the traditional theory ignores the managers, investors in decision-making by psychological factors, and at the same time the number of models focus too much on the use of quantitative analysis, the premise set strict conditions and separated from the actual situation, thus making traditional financial theory to these phenomena explain the weak.Along with the 20th century, the 80's the rise of behavioral finance theory, behavioral corporate finance as corporate finance theory and behavioral finance theory of mutual integration of the resulting product also. Behavioral Corporate Finance breakthrough of modern corporate finance theory and economics paradigm of a rational framework.Focus on the people involved in the psychological and behavioral analysis of the assumptions it closer to the actual situation in the capital market, from a new perspective to study the invalidity of the external market and internal management of the company's non-rational financing, investment, dividend policy and other implications. M & A at the field, behavioral corporate finance for a series of "financial vision" for a positive argument and beneficial to explore, to a certain extent make up for the traditional financial theory blank.From a theoretical sense, to conduct corporate finance theory for the study of company mergers and acquisitions M&A theoretical study on the enrichment and development of the theory of practice conducive to a more appropriate explanation; At the same time, acts of corporate finance will have a positive effect, help Study in the Behavioral Finance to develop a satisfactory framework for the disciplines. From a practical point of view, inefficient capital markets and stock prices and the real value of deviation will affect the merger and reorganization of listed companies act; Design flaws in the system, the managers of listed companies are more likely to use capital markets to enlarge its own non-efficiency of over-confidence psychological. Therefore, in the development of China's securities market is not mature enough, is to deepen reform of state-owned enterprises, but also, more generally, the existence of principal - agent problem, investors and managers of non-rational behavior is likely to combine, resulting in the exacerbation of the stock market bubble and corporate irrational expansion of mergers and acquisitions. Thus, the introduction of acts of corporate finance theory, combined with the actual situation of China's M & A market study on China's main regulatory and market actors will have great significance.Based on the specific context of the transition period, this article in our capital markets and listed companies financing environment-specific pattern of control over the configuration, the integrated use of the norms of research and empirical studies combine cross-section study of static and dynamic time series study method of combining , from the acts of corporate finance theory perspective to equity financing preference of listed companies as well as mergers and acquisitions of over-investment in inefficient acts as the entry point, Chinese listed companies in mergers and acquisitions financing, mergers and acquisitions investment in the status quo, as well as the application of acts of corporate finance to carry out a full analysis of the premise, based on in-depth exploration into non-rational investors and irrational managers of the company M & A investment and financing behavior, and proposed a corresponding the countermeasures and proposals.The main conclusions: (1) China's securities market the company's pricing factors on mergers and acquisitions among listed companies have an important impact. Stock market mergers and acquisitions of listed companies both sides to make a significant different evaluation, mergers and acquisitions the company's market value of the degree of deviation from the book value is higher than the target company. (2) mergers and acquisitions of listed companies in the choice of financing instrument, the managers forecast that the market is right factors have to be able to finance the company's shares have a significant positive impact. In the short term, once the managers think the company's market price of the high side, at the choice of financing instrument on the rights and interests of the financing will be biased. (3) in full force and effect in non-market, stock prices will lead to deviations from equity financing and supply conditions of the time difference, and thus have an impact on the level of investment. For mergers and acquisitions of listed companies, its stock value has been over-estimated the extent of the greater, the greater the preference for large-scale mergers and acquisitions investment spending. (4) the degree of confidence managers and M & A decision-making showed no significant positive correlation between. Managers of listed companies for their own long-term benefits to consider, for M & A activity did not show the degree of confidence is consistent with their behavior preferences. (5) managers over the degree of confidence with the acquisition of the company's capital structure and debt maturity structure of a significant positive correlation. Over-confidence that led to acquisition managers to overestimate the profitability of investment projects, to underestimate the risk of decision-making, and then select the radical capital structure and debt maturity structure. (6) for the acquisition of investment managers to hold higher the cautious attitude of the confidence the extent of their investment spending and M & A negative correlation was not significant. However, managers of over-confidence in M & A investment of cash flow showed a strong preference.This paper has the following three innovations:First, from the acts of corporate finance theory in this new perspective on mergers and acquisitions in Chinese listed companies to finance, investment analysis and research, corporate finance act expanded scope of study to make up for the traditional theory of the inadequacy of corporate mergers and acquisitions, has enriched and perfected M & A study of the theoretical system, build a behavior from the Perspective of Corporate Finance M & A research framework for investment and financing behavior. Secondly, the use of M & A sample of listed companies to replace the traditional IPO companies Empirical Test sample "window opportunity" the company's financing structure of the short-term impact, the effect is even more prominent and significant; time distribution of samples to 2005 for share-trading reform boundaries, full circulation through the stock of capital market conditions before and after comparison, the market timing theory of corporate finance acts as well as the deviation of the stock price impact of financing policy, through the interpretation of investment behavior is more convincing.Third, the combination of governance structure of listed companies in China the status quo, build confidence executives over the company's acquisition of the impact of investment spending empirical test model. Investment - cash flow sensitivity analysis using cash flow from operating activities and financing activities, cash flow analysis of the dual path, making our country more in line with the conclusion of the study of capital market financing environmental realities.