Research On M&A Payment-methods Of Listed Companies In China

Payment methods are very important in listed companies' M&A practices. They are connected with the both interests. Because of equity division, payment methods adopt by Chinese companies in their M&A practices are single. Cash payment is the main payment manner. This can not meet the rapid development of M&A. After shareholder structure reform, China's capital market is basically in harmony with the principles of West Country. The capital market recovers its' functions in pricing and resource allocation. This will effectively promote financial innovation. Many payment methods used in the West Country, such as stocks payment, leveraged buyout and comprehensive securities payment will be used in our country.The article summarizes present situation of M&A Payment methods in China, analysis existing problems and their causes. After shareholder structure reform, payment methods become diversification and marketization, the selection will be rationalization and specialization. The thesis analyzes diversification payment methods. For stocks payment method, the article focuses on using reasonable method to determine stock exchange ratio, especially "EPS not be diluted" and "L-G model". For leveraged buyout and comprehensive securities payment, the article focuses on how to use these methods in our country.After shareholder structure reform, the tradable shareholders' interest is in accordance with the un-tradable shareholders'. Listed companies will choose proper payment methods in order to increase stock value added. The thesis constructs an analysis framing of the selection of M&A payment methods, compares every payment method's cost, risk and income. In order to give advices to the decision maker, the article uses analytic hierarchy process to evaluate payment methods.At last, the thesis gives some advices. Such as further perfect capital market, make full use of diversification payment methods, enrich M&A financing methods.