An Research Of The Determines Of Choice Of Payment Method In Mergers And Acquisitions Of China Listed Companies

Mergers and acquisitions (M&A) are always remarkable capital transaction, many domestic and foreign scholars have done much research in this area. 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. Previous study of domestic scholars predominantly focused on the performance of M&A, there are only a little research on the motives underlying the payment method in corporate acquisitions. But foreign scholars, from the eighties of last century, has done much research in this field and made lots of research results. This study has a certain significance in the theoretical study of the payment method and M&A practiceThis thesis studies the current situation of payment methods of China's listed company and influence factors to the choice of payment methods by the method of both normative analysis and empirical analysis. Especially focus on the determines to the choice between cash and stock of China's listed company from 2008 to 2010.This thesis includes the following five parts:Part I, introduction. Introduction expounds research backgrounds and significance of the thesis, research ideas and methods as well as the major Innovation points and deficiencies, while drawing an flowchart about this thesis.Part II, literature review. This section summaries and comments on the research results of the domestic and foreign scholars, points out the lack of current research and the future development trends.Part III, theoretical basis. Payment methods in this thesis are divided into cash, stock, assumed liabilities, assets and mixed payments, in the section details of the features of each payment will be talked. At the same time, the classical theory which we elaborate will be used as important theoretical basis of empirical analysis later.Part IV, current situation. Analyze the current situation of payment methods of China's listed company from 2006 to 2010 and draw some relevant conclusions.Part V, empirical study. This section is the core of this thesis. Firstly, research sample filter and data source are referred, then make the theoretical analysis and proposed hypotheses, thirdly, design variables and build mathematical models according to the research hypothesis, the next part is regression analysis, finally empirical findings are concluded.Part VI, closing remarks. Summarize the views of full text to come to the conclusion while set out some enlightenment of this research area.This thesis includes two main research results, one is normative research result, the other is empirical research result:First, normative research results. Specific for:corporate M&A activities have become increasingly active in China; the amount of large M&A deals changes little, medium reduced, small increase rapidly; thirdly, cash is still the mainstream and stock is gradually increasing; with deal price higher, the choice of payment methods tends to diversify.Secondly, empirical research results:stock is more likely to choose in related-party transactions than non-related; the likelihood of stock financing increases with higher relative size of the transaction; if the shareholding ratio of the acquirer's controlling shareholder is 35% or more, the acquirer will be inclined to use cash; the probability of stock financing decreases with an acquirer's higher cash availability; the financial leverage is positive related to the use of cash in an acquisition; stock will be used more often if the acquirer is an ST listed firm. In addition, the acquirer's growth opportunities, industry, acquiring firm stock returns and target's listed status have no strong influence on the choice of payment method.This thesis studied the main influence factors of China's listed company's payment methods after non-tradable share reform, the research findings are up to date; in addition, there are innovative research findings about the relationship between payment methods and asymmetric information, financial characteristics of the mergers and management ownership in this thesis. However, this thesis has some shortcomings, such as some data is missing, unreasonable design of the variable, and so on. I hope to continue studying in the future.