The Research On Basic Characteristics And Key Influence Factors Of Merger And Acquisition

The merger and acquisition(M&A)of companies has the characteristics of periodicity and wave-like cycle development.The cause of such characteristics can help us understand the development path and rules about M&A activities.The overall M&A activities are the results of a large number of market entities' behaviors.The cause of overall M&A activities is no longer restricted to local market,but is related with the macro economic environments.The abundant appearance of cross regional M&A has directly promoted the economy integration among different regions and thus a large number of company unions are formatted.The regional resource transfer rules are embedded in the M&A activities.The target companies' selection is a key problem in the M&A.The characteristics and predictabilities of target companies can help the acquiring companies distinguish the target companies and can also guide the investors'investment strategies related with the M&A.In practice,many M&A activities have not achieved the expected effects.The failure in the culture integration is one of the main causes.Besides,the compensations of top management staff have close relationships with M&A behaviors.This dissertation is based on the influence of various factors during the preparatory stage of M&A.The decision of enterprise M&A is influenced by both internal conditions and external macroeconomic or market environment.However,there are many researches focusing on single factor at present.In this paper,we choose the representative factors from various aspects,and give the whole process characteristic analysis of the basic influencing factors.This text has applied the econometric models,event study methods and complex network modeling methods to empirically study the characteristics and predictability of target companies in the Chinese capital market,to empirically study the relationships between M&A and top management stafrs compensations,to study the culture integration after M&A from the social networks perspective,to empirically study the dynamic relationships between overall M&A and macro economy in China,to study the characteristics of cross regional M&A network of Chinese listed companies.The main research works of this dissertation are as follows:(1)Study on the characteristics of target companies in Chinese capital market.By using the one-way analysis of variance and Logit regression model,we acquire the characteristics of target companies in Chinese capital market and test the effects of Logit model on distinguishing the target companies.The results demonstrate that the characteristics of target companies include low administrative efficiency,relatively large asset size,lower liquidity,low growth rate and scarce resources.The companies' operating capacity,liquidity and potential of capital growth can interpret them being the targets well.Also,the Logit model can distinguish well target companies.(2)Study on the M&A influential factor from the perspective of top management staff's compensations.We do comparative analyses on the M&A samples according to whether the acquiring companies are listed and complete the non-tradable share reform.Specifically,we construct the influence factor model of top management staff compensation,and study the relationship between M&A and top management staff compensation.After that we provide some suggestions on the design of compensation contracts.The empirical results show that the company asset size induced by merger and acquisitions has significant positive impacts on the compensation.The past operation performances have no significant relationships with top management staff compensation.The share concentration has a positive relationship with top management staff compensation.(3)Study on the M&A influential factor from the perspective of culture integration.We construct the social networks according to the interactions among individuals in the enterprises and establish the cultural integration model based on the social networks.Using an agent-based model,we investigate the impact of network structures on post-merger cultural integration and merger performances.The results demonstrate the social network structures,the communication channels and modes among the individuals,and the inner relationships between M&A culture integration and M&A performances.We find that decreasing the social networks' clustering degree will increase the network density and average clustering coefficient at the initial time of cultural integration.Meanwhile,it will decrease the average path length,average vertex betweenness and standard of vertex betweenness.Thus,it can significantly lower the individual turnover,but will make more interpersonal conflicts and reduce the organizational communication effectiveness.We also find that decreasing the differences of number of interaction neighbors among individuals will raise the individual turnover and increase the organizational communication effectiveness.(4)Study on the M&A influential factor from the perspective of macro economy cyclical variables.By using the co-integration test under the VAR model,vector error correction model and impulse response function,analysing the long term equilibrium and short term dynamic relationship between overall M&A activities and GDP,stock price index,CPI,PPI,IPI,total investment growth rate.total consumption growth rate,unemployment rate.In the short run,the economic boom will drive M&A to come alive later.(5)Study on the M&A influential factor from the perspective of macro economy non-cyclical variables.Studying the association between overall M&A activities and monetary supply,interest rate,exchange rate,Balance of deposits and loans of banking institutions.By using the Granger causality test,co-integration test under vector error correction model and impulse response function method.It is found that there is a long-term equilibrium relationship between M&A activities and other macroeconomic non-cyclical factors except tax rates.(6)Study on the regional transfer rules of companies' M&A resource.We construct the complex cross-regional M&A network by using the complex network modeling method.We analyze the network average path length,average clustering coefficient,betweenness,and node degree and distribution.The results demonstrate the company resource regional transfer and industry recombination rules embedded in the M&A activities.We find that the complex cross-regional M&A network has important characteristics of small world and scale-free.The cross-regional M&A relationships show obvious economy development hierarchy features.The provinces(cities)with higher level of economic development are the central parts of cross-regional resources transfers and industry recombinations,and have stronger resource control abilities.The cross-regional M&A network demonstrates a core-periphery structure.Such results can help formulate the cross regional M&A decision making the macro industry policies.Finally,the main limitations of our research and future research directions are summarized.