China Listed Company Merger And Payment Research

Merger and Acquisition(M&A) is an important way for entities to expand rapidly and occupy the market share, and the payment-method for M&A is concerned more as one of the kev factors which affect the success in M&A. Previous study of domestic scholars predominantly focused on the performance of M&A, there are only a little research on the process of M&A. Payment in M&A is the last step of M&A, which is a key factor on the success of M&A, the results of empirical research also bear this point. This paper is a research on the payment-method of our country listed companies, the research content focuses on the choice of the payment-method in M&A.But how can the listed companies make an efficient use of different methods of payment in their M&A practices? How many such methods are there available to choose from in the domestic M&A market? These two questions will be well solved in this paper.First, some related M&A concepts are defined, and the domestic M&A payment-methods are compared with those abroad, then it comes to a systematical review of the results and progress of theories and empirical researches about M&A payment-method; The second one based on the general theories of the payment manner, to establish a new framework for theoretical analysis. Based on the impact of the compositional proportion of cash-stock on the actual cost of M&A, set up a mathematical model to deduce the optimum payment proportion to minimize the payment cost and prove it with examples; At the end of the article, we comprehensively analyze the payment-method of the M&A case between Citigroup and Anhui Shan Ying Paper Industry Co.,Ltd,SAIC MOTOR and Nanjing Automobile Croup,Lenovo and IBM PCD. According the result of the M&A cases, we know payment in M&A is a key factor on the success of M&A.Seeing that the basic theoretical study on the methods of payment in China is at a very low level, this paper makes an attempt to establish a framework for theoretical analysis to provide theoretical support for M&A practices.