An Empirical Study Of The Relationship Between The Form Of M&a Financing And The M & A Performance

With China's rapid economic growth, the industry become more open and the rise of the huge middle class consumer market have helped China to become a hot spot of mergers and acquisitions. In 2006, China's share reform basically completed, and truly a tradable, which will share the market structure began to show the trend of decentralization, will also further reduce the market valuation, making the company the cost of acquisition can be reduced, and in This full circulation of the market environment, mergers and acquisitions market participants will change the values and motivations, which greatly improve the performance of mergers and acquisitions, which are paving the way for mergers and acquisitions. At the same time the new "Company Law", "Securities Law" , the new "acquisition management practices of listed companies" and "On promoting the state capital adjustment and guidance of state-owned enterprise restructuring," the "mergers and acquisitions of domestic enterprises by foreign investors on the requirement" formally implemented, which greatly advanced the process of Chinese M & A market.Mergers and acquisitions in China in recent years, showing a trend of increasingly large scale, which need more large funds, the financing will become more important. The different forms of financing, the financed fund, the cost ,the size of risk and financing channels determines the effectiveness of M & A activity, thereby affecting the ability to achieve the final success of mergers and acquisitions.This study focuses on comparison of the performance under the different means of financing, the aim is to get relationship between the two through the empirical. First of all, article defined the concepts of M & A financing and introduced the M & A financing theory which as the theoretical basis for this article. Meanwhile, introduced the M & A financing instruments currently in use and the status of our acquisition financing, and the reasons causing this situation were discussed. The actual situation based on the sample collected, this paper selected in 2006 listed companies in China M & A events as object of study, using factor analysis and regression analysis, then get the following conclusions: different types of financing does bring different M & A performance. The use of equity financing for mergers and acquisitions M & A performance is less than the use of other means. M & A debt financing and M & A performance is positive correlation. The Internal cash financing capacity and M & A performance is negative correlation. Finally, according to the research findings, analysis of its causes.