The Influence Of Corporate Governance On M&A Performance Of Listed Companies In China

Business growth and development can be achieved through various channels. M&A as a outside governance mechanism can improve the acquisition efficiency of resource allocation, reducing the company’s operating costs, is one of the most common way to expansion the capital of business. Mergers and acquisitions among enterprises, can effectively adjust the structure of enterprise property rights, and achieve the optimal allocation of production factors, so that the rationalization of industrial structure to the track. Since accession to the WTO and the further opening of the economy, our enterprises have been a massive wave of mergers and acquisitions. With the development of China’s market economy, promote the restructuring of state-owned enterprises, separation of ownership and the establishment of modern enterprise system and improve the corporate governance system to become further enhance our economic system to promote the priority.Theorists on the performance evaluation of M&A did not form the same conclusion, this paper builds on previous research on M&A performance evaluation system of listed companies under the background of "circulation". From the perspective of corporate governance to find the factors of M&A performance, from both of the corporate governance (ownership structure, board independence, executive incentives and other factors) and the level of corporate governance (corporate governance index) to demonstrate the acquisition of corporate governance on performance. Firstly, the paper gives the definition of M&A and corporate governance, summaries the concept of mergers and acquisitions and corporate governance performance theories. The review gives an entry point for this study. Secondly, analysis the performance of corporate governance mechanisms from the ownership structure, the independence of the board of directors, senior management and corporate governance index. Thirdly, use the way of factor analysis to calculate the performance score and the Listed Companies Corporate Governance Index. On the basis of relevant theories, test the multiple regression models with empirical hypotheses. Finally, analysis the results of empirical, and give the optimization corporate governance structure and the way to improve the performance of M&A.This paper draws the following conclusions:about the performance evaluation and the M&A performance of listed companies, according to the article, it seems that the existence of the target company’s performance first increased and then the downward. On the ownership structure of the performance of M&A, equity concentration and the largest shareholder in M&A performance of state-owned property lower the performance of M&A; the equity restriction improves the performance of M&A. On the performance of executive incentive effects, empirical results indicate that executive compensation, managerial ownership and the ownership of board of M&A has significantly improved performance of the role; there is a positive correlation between corporate governance and M&A performance index, good corporate governance can improve M&A performance significantly.