Reputation, Non-monetary Private Benefits Of Control Over Mergers And Acquisitions Decision-making Research

Non-monetary private benefits of control exists in the company widely, which is becoming an increasingly important implicit incentive mechanisms, and impacts corporate M & A decision. This paper discusses corporate managers M&A decision the based on non-monetary private benefits of control, and the weight coefficient which is determined by the major non-monetary private benefits of control type affects the extraction of M&A decision-making behavior as a survey of four major types of factor income.The empirical study in this paper selects four well-known enterprises in Beijing by the questionnaire, and the private benefits of control are divided into types of reputation, service consumption, promotion and nepotism in four dimensions, and we discussed the both sides in M&A. and thus demonstrate the role of model assumptions and the degree of reputation. After analyzing 119 valid questionnaires, the results show that:(1) In all kinds of private benefits of control, the importance of reputation accounts for the largest share, which is shown from the experts questionnaires;(2) From the multiple regression equation of view, whether the buyout firms or the target companies, reputation effects are obvious impact. The influence of the target companies suffered from various types of income are smaller than the buyout firms. But the benefits of reputation effects on two types of companies are both bringing more than 20% impact. As a recessive factor, though non-monetary private benefits of control can't have an immediate impact like monetary gains, it still can not be ignored. Focusing on this kind of benefits in M&A process can provide a reference for managers...