Research On Decision Of Enterprise M&a And Its Performance Under The Background Of Delisting System

The growth of enterprises can be achieved by a variety of channels.M&A,as the first choice for the rapid development of enterprises,is one of the most commonly used in the enterprises capital expansion because it is able to effectively improve the efficiency of resource allocation and operating cost.Along with the reform of delisting system,enterprises' M&A of the delisting companies have changed significantly.Under the background of new delisting system,how to choose valuable delisting companies as M&A targets,what kind of way to be chosen as the best means of payment,how to evaluate the performance and influencing factors of M&A scientifically become the key issues for decision making of enterprises M&A.Therefore,comprehensive and in-depth researches on decisions of enterprise M&A and its performance will be good for enterprises' accurately selecting delisting companies as the target of M&A,realizing M&A with the optimal way,measuring the performance and influencing factors of M&A scientifically and then improving management efficiency,optimizing resource configuration optimization.In this paper,we combine theoretical analysis and empirical analysis to study the decision of enterprise M&A and its performance in the context of the reform of delisting system.In the part of theoretical analysis,firstly,this paper expounds the connotation and ways of delisting system,the necessity and process of the delisting system reform.Secondly,the basic concepts,types of M&A and the motivation of enterprise M&A are briefly described.Finally,key issues such as enterprises' choosing delisting target enterprises,method of payment,the evaluation of performance and post integration of M&A are analyzed.In empirical analysis,this paper studys the decision and performance during M&A under the background of delisting system along a path from targets' selection,M&A payment's determination,M&A perfomance's evaluation and factors.First,we apply principal component analysis approach to measure the potential value of delisting companies in three aspects,i.e.,corporate govenrnance,capital scale and operating management.On this basis,we construct the threshold model to analyze the relationship between the potential value and the probability of merger and acquisition.The results show that,the higher the potential value of the delisting enterprise,the more unlikely the merger and acquisition will occur.And the delisting enterprises in the medium potential range are the most likely to be acquired.Second,through the establishment of Logistic model,we study the the impact from three aspect,i.e.,market,the company and tracnsation,on payment of M&A from the delisting companies as targeted company.The results show that market factors and trade factors play important roles in the payment of delisting companies when it comes to M&A,but different factors for different indicators of company trading status of delisting companies have different payment options affected.Third,this paper uses event study method to measure short-term and long-term performance aimed at delisting companies M&A.We find that with delisting companies as the targets of listed company merger and acquisition of short-term performance and long-term performance are improved,and the state-owned company's short-term M&A performance is significantly better than the non-stateowned companies,but the former's long-term M&A performance is not significantly higher than the latter.Finally,to investigate the M&A decision on performance under the background of the delisting system reform,this paper uses factor analysis and multiple regression analysis method to examine the effect of trade characteristics(including property of the target company,payment method and M&A type)on M&A performance in that year and the lagging three years' performance.The results show that property of the target company has obvious effects on M&A performance.Delisting company with high potential value,and relevance and belong to the same industry of companies contribute to the ascension of M&A performance.Furthermore,the shortterm M&A performance of cash payments is better than that of non-cash payment,but contrast for the long-term.At the same time,compared to the equity M&A,asset acquisition is more advantageous to the realization of the company's long-term performance.At last,under the delisting system background,this paper puts forward some suggestions from three aspects,i.e.,the choise of target companies;the comfirmation of payment of M&A;the integration of the company after M&A,to improve the performance of enterprises' M&A,which can offer some reference for it.