Based On The Ultimate Controller Research The Impact Of The Company's M & A Performance.

M & A is the eternal theme of the securities market. The focus of scholars debate is whether merger create value. Mostly study based on traditional corporate governance theory,however,the company does not meet the reality of traditional management theory to describe the environmental characteristics,in particular the capital markets in their own unique system background,the decision on M & A performance analysis of the traditional framework is not fully applicable to our analysis of the M & A mechanism.Therefore,to search for an economic hypothesis to explain the performance of our listed companies which is more compilable to the real governance features. Since Stein (2001) on agency problems and investment behavior (including M &A), his point of view to this paper some idea. He pointed out that the system of weak investor protection environment, Ultimate controller of the company may even emptied listed companies. The agency problem will enable the company Investment behavior (including M & A activity) more serious and universal distortion. High concentration of equity and the lack of protection for small investors in china, there may be the agency problem of ultimate controller. This article from the perspective of the ultimate controller, research the influence of the ultimate controller on the company's M & A.This paper divides the Characteristics of the ultimate controller of the company into the ultimate controller of the control and cash flow right, nature investigates the influence of the Characteristics of the ultimate controller on the company's M & A basing public trade firms in china stock during 2006-2009 period. This paper adopts event study. The result reveal that:1.From the perspective of the ultimate controller, study the influence of the Characteristics of the ultimate controller on the company's M & A. Form the new perspective understand the performance of M & A.2.Using event study examines the performance of M & A.Before the merger announcement, only get a positive return, then decreased gradually, show that the merger does not create value to the company.3. There are incentives of the cash flow of the ultimate controller to the acquisition performance. To some extent, there is occupation effect of the control right on the performance of M & A. When the control right over a certain percentage, the occupation effect have a certain degree of ease. There are occupation effect of the separation of Control and cash flow rights of the ultimate controller on the performance of M & A.4. The occupation effect of the separation of control and cash flow rights on the performance of M&A, the government-controlled companies are more serious than non-governmental controlled; relative to the central control, the local government-controlled are more serious.