The Research On Financial Methods Of China Enterprise M&A

Researches on financing preference of a firm have become the frontier ofcorporate finance in recent years. Academics and practitioners have long beenconcerned about what kind of financing is the most favorable business development.Mergers and acquisitions in China in recent years，showing a trend of increasinglylarge scale，which need more large funds，the financing will become more important.The different forms of financing， the cost determines the effectiveness of M&Aactivity， thereby affecting the ability to achieve the final success of mergers andacquisitions. After decades of development，China’s stock market has become a majorsecurities trading market in Asia and one of the world’s most potential fordevelopment of the capital market，but in the financing behavior，but listed companiesin China and oversea listed companies have different in financing preference.This study focuses on the internal factors that in affect the M&A financing; thenstudy whether the domestic M&A and outbound M&A financing is subject to thesame factors. First of all， article defined the concepts of M&A financing， the M&A financing instruments currently in use，Meanwhile introduced the M&A financingtheory which as the theoretical basis for this article. After reviewing the theory of theliterature on M&A financing， the paper introduced the history and the status of ouracquisition financing.The actual situation based on the sample collected，this paper selected in listedcompanies in China M&A events from2010to2012as object of study， accordingto the acquired company， the sample is divided into domestic M&A sample (271)and the other M&A sample (67). Using factor analysis and Logit regression analysisthen get the following conclusions: the capital structure，profitability，growth issignificantly. As to the domestic M&A sample，the firm size，ownership structure arethe affected factors，and the collateral value influence the outbound samples. ofdomestic M&A financing decision; collateral value of outbound M&A financingdecision. Then，the paper focuses on the external factors that affect the M&Afinancing: the size， the structure， the level of market-oriented operation andinternational levels of the capital market. Finally，based on a qualitative description ofthe empirical research conclusions and external factors of internal factors，the paperdraw conclusions of this and gives policy recommendations.