| At this stage,whether domestic or abroad,expansion impulse is one of the most important endogenous behavior characteristics of enterprises.However,many enterprises with M&A willingness are deterred because of the existence of information asymmetry.Because the SFC does not require enterprises to disclose the information publicly,the degree of information asymmetry between the two sides of M&A has increased further especially if the target company is mostly a non-listed company.Because the company is difficult to accurately assess the future cash flow and risk of the target corp,it is likely that the merger and acquisition of non-performing assets will lead to the failure of the merger and acquisition and bring huge losses to the enterprise,which runs counter to the original intention of the enterprise to obtain the synergy effect of merger and acquisition.Information asymmetry which not only affects the M&A decisions of enterprises,but also has a significant impact on the performance of mergers and acquisitions.It is very important in the process of mergers and acquisitions.The board of directors is the direct decision-making body of mergers and acquisitions,the highest decision-making body of the enterprise,and the information resources it owns will play an important role in the strategic decision of the enterprise.From the channel of information obtained by each board member,it comes from the social relationship of the director and the experience of each individual.Therefore,this article begins with the external information channels,and explores the impact of different directors’ network locations on corporate M&A decisions.And how does the network of directors affect the performance of M&A?When the enterprise information environment is worse,how will the relationship between the director’s network location and M&A change?Second,whether the previous merger and acquisition experience of the directors can make existing companies have more management procedures related to the implementation of M&A strategic decisions,and it will increase the likelihood of making the next M&A decision?Further,the quality of the past mergers and acquisitions experience of the directors may be good or bad,which may bring value creation to the company,but it may also bring about value damage.What will happen to the past merger and acquisition experience quality of the directors?When companies face a poor information environment,how does the relationship between the M&A experience of directors and acquisition decisions,the quality of the directors’experience,and the current M&A performance change?Finally,considering the companies need to be absorbed and digested by experienced directors after acquiring external information,internal information such as the experience of directors also needs external information to supplement and improve,and these two sources of information do not play an independent role.So what interaction does the director’s network location and director experience have for M&A decisions?Is it a substitution effect or a complementary effect?How will the interaction between the director’s network location and the quality of the directors’ experience affect the M&A performance?Based on this,this article attempts to find the answer to the above questions,and divides the source of M&A information into external information and internal information,and explores the relationship between directors’ network location,directors’ experience,and corporate M&A.The research conclusions of this paper are summarized as follows:(1)Based on external information channel perspectives,this paper selects the listed companies in Shanghai and Shenzhen A-share non-financial industry from 2004 to 2016 as the research object.We empirically examines the influence of directors on corporate M&A decision and M&A performance under the network framework by using Logit model,Tobit model and OLS model.The study finds that,firstly,the degree of directorial network centering is positively related to M&A decisions.The central position of the social network means that the directors of the company have the ability to obtain information to the greatest extent,and reduce the level of information asymmetry,then grasp significant investment in time and making scientific decisions.Second,the effective information transmitted by the social network helps the directors to better play their advisory advice functions and eventually achieve better M&A performance.That is,the degree of directorial network center is positively related to the M&A performance of the company.The higher the director’s network level means that the director has more information dissemination channels,and then strengthens the advisory advice function of the directors in the merger and acquisition process,and plays a positive role in promoting M&A performance.Further,when the information environment is worse,the directors cannot obtain the required information from the official information channels,so the director network plays a key role as an informal information transmission channel.The worse the information environment,the stronger the positive correlation between director network and M&A decisions,director network and M&A performance.In addition,after considering the effects of scale substitution,index substitution,and endogeneity in the robustness test,the above findings are still valid.The research conclusions show that the corporate director’s network location is an important source of corporate external information and channel support for the board’s consulting function,and playing a positive role in promoting the company’s major strategic M&A decisions and value creation after scale expansion.In the process of constructing and selecting members for appointment,the position of a director’s social network has become one of the important factors that an enterprise should consider,and it is closely related to the company’s strategic decisions,sustainable development,and future returns.(2)Based on the company’s internal sources of information,namely the experience of directors,tracking the past six years of M&A experience of the board members,taking a sample of A-share non-financial listed companies in Shanghai and Shenzhen in 2010-2016 as a sample to discuss how the directors’ M&A experience impact the M&A decisions,and the relationship between the quality of M&A experience and M&A performance.The study found that,firstly,the richer the experience of mergers and acquisitions of directors,the greater the probability of corporate mergers and acquisitions.After decomposing the quality of the experience of directors and mergers and acquisitions,it was found that high-quality M&A experience is conducive to the improvement of corporate M&A performance.In addition,when the information environment is poor,the sensitivity of directors’ M&A experience and M&A decisions is stronger.At the same time,the positive effect of directors’ M&A experience quality on M&A performance will be strengthened.The research conclusions show that M&A is the most important way in the process of external expansion of Chinese enterprises.The experience of the directors provides important internal information for the company,and also enables the company to have professional M&A management knowledge.Members of the board of directors who are strategic decision think tanks should carefully learn from past M&A experiences,sum up high-quality experience from successful cases,and strengthen successful M&A management procedures.At the same time,they should learn lessons from failure cases and gain inspiration from them.In short,the directors should cultivate and continuously improve their own M&A capabilities and participate more extensively in corporate M&A activities,especially in response to complex M&A,so as to formulate effective M&A strategies for this company and enhance M&A performance.(3)Based on external and internal information of the company,this paper uses the Shanghai and Shenzhen A-share non-financial listed companies from 2010 to 2016 as a sample to verify the interaction between the position of the network and the experience of the directors on M&A decisions,and to further test the quality of the network location and the quality of the M&A experience of the complementary effect of M&A performance.The study found that,first of all,in the network of directors,directors with M&A experience are conducive to the formulation of corporate M&A decisions,that is,there is a complementary relationship between the degree of network center and the experience of M&A in M&A decisions.Secondly,after distinguishing the quality of director’s M&A experience,it is found that a combination of a higher network center degree and good M&A experience is conducive to the improvement of corporate M&A performance.That is,network location and the quality of M&A experience have a positive interaction with M&A performance.The research conclusions show that the research on the interaction of these two sources of information proves that the external information and the internal information are mutually reinforcing,and the two get more benefits in collaboration.The research conclusions have proved that the director of the company has experience and quality of experience in the process of promoting mergers and acquisitions of enterprises fully reflects the company’s information soft power.Experience of the past mergers and acquisitions of the directors guides the current company.Making historical judgments in making correct judgments when faced with M&A decisions;Directors with good M&A experience have become a rare source of internal information for companies.Strategic policies and guidance from successful M&A experiences have become part of subsequent M&A transactions.And it is a powerful weapon to enhance the performance of corporate mergers and acquisitions.The innovations of this paper are as follows:(1)Based on external information transmission channels,this paper quantitatively describes the relationship between directors of listed companies by constructing a network of directors,and applies the macro-level sociological methods to the field of corporate finance research at the micro level.And different from the past,this paper starts from the overall network perspective,explores the dynamic impact of the pre-motivation test and post-performance appraisal of M&A activities,enriching the social network,director governance and M&A.The research results provide empirical evidence for the company’s board of directors to build and optimize mergers and acquisitions.(2)Different from the previous literature,the relationship between M&A experience and corporate mergers and acquisitions is mainly studied from the perspective of organization.This paper returns the research of M&A experience to the perspective of"people".Because the experience of summarizing and transforming is the individual,that is,the director or the executive,and migrates to other companies with factors such as the promotion.At the same time,when studying the impact of the quality of directors’ M&A experience on M&A performance,it is different from the previous study of M&A experience,but from the perspective of the quality of M&A experience,the quality of M&A experience of directors is divided into high-quality M&A experience and poor M&A experience,and the impact of M&A experience quality on M&A performance was discussed in depth.(3)Putting the network position of directors and the experience of directors under the same framework,respectively study the interaction effect of the dual information channels of directors’ network position and directors’ M&A experience on M&A decisions,and the impact of the interaction between network location and directors’ M&A experience quality on M&A performance.In order to make up for the gap between the two to study its influencing effects,and expanding the research in this field. |
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