Study Of M&A Performance Affected By Different Payment Methods

In recent years due to the financial crisis and European debt crisis, Europeancompanies face crisis, such as funds circulation has brought our country listed companyM&A opportunities, combined with the Chinese government’s policy support, in2011our country listed company M&A activity jumped to an all-time high of nearly six years,we can see China’s merger and acquisition activity is increasingly frequent. In mergersand acquisitions, what payment pay for acquisition, merger and acquisition activity is akey step. Payment and what are the M&A market in our country, in the face of more andmore payment, buyout firms how to choose, and different M&A payment bring whatkind of M&A performance, what kind of payment can give enterprise mergers andacquisitions activity to have the value creation effect. These issues play a crucial role inmerger and acquisition activity.This article adopt the method of combining normative research and empiricalresearch, first of all, in summing up domestic and foreign scholars of different paymentmethods influences the performance of M&A based on the literature, based on the signaltransmission under the asymmetric information theory, risk sharing theory, control theory,capital structure theory, clarifying the payment mechanism influences the performance ofM&A; And then use the event study method, combining with our country securitiesmarket M&A event in2011as samples for empirical analysis. In view of2011M&Aevents, and the influence factors of M&A performance is more, by making a sampleselection criteria selected135M&A events, using the event study method, with theexcess yields as a measure of short-term M&A performance indicators, the followingconclusions:(1) our country securities market prerequisite to accord with event studymethod to use. Stock markets can respond faster to M&A events, to verify theeffectiveness of China’s stock market.(2) the different payment methods will producedifferent short-term M&A performance. Cash payment under short-term M&Aperformance is better, can produce significant positive excess returns; Stock under theway of payment and asset replacement, short-term M&A performance is bad, willproduce negative excess returns; Way to take on debt and hybrid payment does not change significantly under short-term M&A performance. According to the results of theanalysis, in view of the construction industry mergers and acquisitions event putsforward the choice of payment, suggest to get excess profits.This paper mainly includes four parts. The first part of introduction mainlyintroduces the research background and significance of this paper, both at home andabroad are summarized in detail about the impact of different payment on M&Aperformance research literature, summarized the research contents and research methods,and puts forward the innovation points in this paper. The second part introduces the modeof payment and the relevant theories of M&A performance. Introduced the our countryappear on the market of8kinds of payment, and the evaluation method of domestic andforeign scholars on M&A performance in the event study method are expounded. Finallybased on the signal transmission under the asymmetric information theory, risk sharingtheory, control theory and the capital structure theory, analyzes how different terms ofpayment are by endogenous variable influences the performance of mergers andacquisitions, has been clear about the payment mechanism influences the performance ofmergers and acquisitions. The third part is the empirical analysis. On the part of theoryon the basis of the five basic assumptions, through strict screening sample standard havechosen135M&A incidents, calculated using excel and SPSS20.0statistics and T test.Last part in the above theoretical research and empirical test on the basis of summing upresearch conclusions and Suggestions.