China's Mergers And Acquisitions In The Game

Since 1980's, payment methods in international M&A have become more and more diversified. In the enterprises M&A, payment method not only has a decisive effect on whether the transaction can be finished fluently, but also influences the enterprises' performances after M&A. Therefore, the choice of payment methods has become one of the key factors in the M&A games.The background of this paper is the enforcement of Acquisition Regulation of Listed Companies and Material Assets Restructuring Regulation of Listed Companies, as well as the establishment of Acquisition and Restructuring Commission. All of these new regulations and commission framed a new supervision structure for M&A, which promoted diversified development of its payment methods.On the basis of former studies, this paper, using incomplete information dynamic game model and empirical test models, researches on the conditions of the game's equilibrium and whether these conditions exist in China's capital market. Major conclusions of this paper are:firstly, listed companies can increase its market values and improve its fundamental conditions in the case of equity payments; secondly, M&A events with relation transactions have better performances; thirdly, since equity payment promotes the formation of reasonable market valuation, enforcement of this policy is rational theoretically and practically; finally, the introduction of diversified payment method proposes higher requirement for securities intermediaries.The innovations of this paper can be concluded into following aspects. Firstly, this paper focuses on the payment methods, combining game model and empirical tests, and proposes "one body, two wings" innovative research lines. Secondly, integrating Event Study and Accounting Study together, this paper investigates performances of the enterprises after the M&A more comprehensively. Finally, data used in this paper are reliable and authoritative because they are all collected from bulletin of Acquisition and Restructuring Commission.