Research On Irrational Behavior In Chinese State-owned Listed Companies Financing M&A Decision-making

With the globalization of the economy and the adjustment of industrial structure, M&Ahas becomed the revolutionized way that Chinese state-owned listing corporations bear thepressure of competition and meet the market demand, and becomed the measures ofeconomic development. Due to the large capital, success or failure of M&A is mainly decidedby financing, especially, M&A financing decision is influenced by investors’ non-rationalbehavior and managers’ irrational behavior, so how to overcome the irrational factor to M&Afinancing decision attracts more and more attention from government, industry and academia.Making a systematic analysis of irrational behavior of the state-owned listing Corporationfinancing decision, is conducive to high success rate of the maintenance of the state-ownedlisting Corporation financing behavior, improving the perfection of the capital market,promoting the optimization of industrial structure. This paper mainly includes the followingcontents:The first part: the build of research framework of Chinese state-owned listingCorporation M&A financing irrational behavior. This paper analysed the characteristics ofChinese state-owned listing Corporation M&A financing, analysed the influence factor ofChinese state-owned listing Corporation M&A financing process, analysed the traditionaltheory of M&A financing, pointed out the limitation the traditional financing theory, and thenlead the theory of corporate finance to the research of M&A financing decision. Based on theanalysis of non-rational behavior and the rational behavior, this paper established the researchframework of state-owned listing corporation M&A financing irrational behavior.The second part: the analysis of Chinese state-owned listing corporation M&A financingstatus. This paper analysed the listing Corporation merger situation, found the problems ofstate-owned listing Corporation financing, and expounded the cause of irrational behavior ofChinese state-owned listing corporation financing problems.The third part, the analysis of investor sentiment in Chinese state-owned listingcorporation financing market. Firstly, this paper analysed the investor sentiment caused bygroup psychological deviation, systematic bias and Information cognitive biases. Secondly,this paper chose daily turnover rate as the proxy variable of investor sentiment and clustering analysis as the test method to analysed the sheep-flock effect of investors. This paper chosechange of stock yield as the proxy variable of investor sentiment and variance analysis as thetest method to analysed the effect of investors overconfidence. This paper chose fluctuatechange of stock yield order as the proxy variable of investor sentiment and wavelet analysisas the test method to analysed the effect of investors sentiment.The fourth part: the analysis of manager sentiment of Chinese state-owned listingCorporation financing. Firstly, this paper analyzed the patterns of manifestation of managersentiment, chose the manager overconfidence as the research key point. Secondly, this paperproposed the hypothesis of manager sentiment, and built the state-owned listing corporationfinancing strategy choice model. At last, this paper used empirical data to test the models, andgot the empirical results.The fifth part: The research on is the research on the irrational behavior impact onfinancing performance of Chinese state-owned listing Corporation M&A financing. First ofall, based on the research of measurement indexes of investor sentiment and managersentiment, this paper chose the appropriate measurement indexes of investor sentiment andmanager sentiment. Secondly, this paper built the model that investor sentiment impact onfinancing performance of Chinese state-owned listing Corporation M&A financing, in thismodel, index of investor sentiment and stock excess turnover rate were used to estimate thedegree of investor sentiment, Cumulative Abnormal Return and hold return were used toestimate the performance of M&A financing. This paper built the model that manageroverconfidence impact on financing performance of Chinese state-owned listing CorporationM&A financing, in this model, number of M&A and merger premium were used to estimatethe degree of manager overconfidence, ROE, CAR, IROI, ROA, CFR were used to estimatethe performance of M&A financing. At last, this paper used empirical data to test the models,and got the empirical results.The sixth part: The irrational behavior governance countermeasures of optimizingChinese state-owned listing Corporation financing performance. Based on the result of statusanalysis and empirical analysis, this paper proposed the suggestion of standardizing investorsentiment and manager sentiment in the process of state-owned listed financing decision-making, which included countermeasur es of governing investor irrational behaviorand countermeasures of governing manager irrational behavior.