The Research Of M&A Performance Based On The Motives Of M&A

At present, in order to have a rapid growth, lots of firms has merged; but many of them fail to add value to them. The reasons that they fail may be various, this dissertation analyses it into two sides related with the firms. On one hand is the owners of the firm have an intention to Maximization of the stockholder' interest, but he also intend to hunt for his own interest in corporate control. On the other hand the managers of the firm have an intention to the survival of the firm to increase the competitive, but he also hunts for his own interest coming from his management position. Besides the positive motivates, this dissertation reckons that deviation from original motive is the main reason leading to the reality of the potential merger performance.Looking back at the M&A performance on the research, evaluation methods and the empirical conclusions, it can be found that there are many factors that influences the reality performance; but there is a factor neglected in the present research, which mainly leads to the failure of the performances. This factor is the negative motives coming from both the owners and the managers.Then based the analysis of the motives of M&A theory, this paper comes up with a new viewpoint on both owners and the managers. We find that owners have the intention of both increasing the value of the shareholders and self-interests; the managers intend to make the firms survive in the competitive market, and also want to enlarge their's control right interests. As is noticed, the motives of the above two related participants in the decision-making may influence the property of the strategy and the performances of post-mergers. To verify how much it brings to the performance, The paper continues the analysis the concrete reality of these negative M&A motives in several aspects and the come up with a series of accounting indexes to appraise performance based on the motives. By the empirical of listed firms merge ring in 2003, we find that the negative motive ruined the post-performance of M&A, and through out the whole life of the firms.In the end, this dissertation in the terms of proxy-agent interprets the reason of the negative motives in the M&A; and comes up with the measurements to restrain and evade the opportunity action in both owners and the managers. As for the positive motives, we should do much merger integration to explore and enlarge the performances. To sum up, this dissertation introduce an new point to research the M&A performance combined with the motives of M&A, which maybe beneficial to he M&A performance studies and in application and theory.