Comparative Study Of Listed Company M&As Payment Medium

With the rapid development of the domestic economy, fast growth of listed companies and settlement of equity division, M&As has become one of the effective ways for the listed companies to integrate resources and expand at a low cost. But how can the listed companies make an efficient use of different methods of payment in their M&As practices? How many such methods are there available to choose from in the domestic M&As market? These two questions will be well solved in this paper.There are two tasks to solve the above questions. The first one is establishment of a new framework for theoretical analysis, which may be roughly divided into three steps: First, based on the impact of the compositional proportion of cash-stock on the actual cost of M&As, set up a mathematical model to deduce the optimum payment proportion to minimize the payment cost and prove it with examples. Next, categorize the purposes of the M&As made by listed companies to point out how to select a scientific and reasonable method of payment for each purpose and set out the major factors affecting such selection. The last step which is also the most important is to build a new framework for selective analysis of the methods of payment from the angle of acquirer,taking the purposes of M&As as the starting point,and payment cost as the rigid constraint condition in combination with different affecting factors, in an intention to provide an overall outlook for the listed companies to select their method of payment in M&As.The second task is to make an empirical study on the major methods of payment adopted by Chinese listed companies in their M&As practices. For this effort, this paper uses a great amount of data in statistical analysis to make a comparative analysis of each method of payment. This paper also sums up the distinctive characteristics, range and process of use,of the main methods of payment as used in Chinese M&As practices. Moreover, it further categorizes each method in terms of method of use in practice and use the main points thereof to make abundant empirical study on stock for stock and fixation issue etc. Based on this, it points out the dilemma in effecting the methods of payment and its reasons,and puts forth proposals and outlets to remove it.Seeing that the basic theoretical study on the methods of payment in China is at a very low level, this paper makes an attempt to establish a framework for theoretical analysis to provide theorectical support for M&As practices. And it is expected that the empirical study on the main methods of payment in this paper will also be used for reference by M&As practicers.