A Study On The Value Of Mergers And Acquisitions Based On Incomplete Contract Theory

M&A (Mergers&Acquisitions) refers to the modern enterprise system, a business enterprise by acquiring some or all of the other property, to obtain an investment behavior control of the company. With the continuous development of China’s capital market, mergers and acquisitions are increasingly becoming one of the main economic activities in investment behavior. As a mean\to achieve the merger, the value of mergers and acquisitions for companies in all aspects of the impact is also deepening. Incomplete contract theory (Incomplete Contracting Theory) emerged in the1980s, is one of the two major branches of the new institutional economics. For a long time, theorists generally considered a strong ability to explain the reality of incomplete contract theory but the model is too abstract and complex. Therefore, the use of incomplete contract theory literature on specific issues in the country has been rare.Based on the existing theory of incomplete contracts to sort out the summary of the incomplete contract theory summarized in four models; Meanwhile, multi-dimensional analysis of the existing M&A perspective redefine turn will redefine post mergers and acquisitions and incomplete contract model for final classification. Finally, the above classification is based on the impact of mergers and acquisitions for the enterprise value to analyze. Through2008and2012occurred in the five years China M&A market M&A events were screened, with measurement software M&A affect the value of the empirical analysis, based on this, the way they combine the use of case studies incomplete contract theory explained the reasons for mergers and acquisitions have an impact on corporate value and made some suggestions about solving the existing problems of Chinese M&A market.By studying the paper concludes, choose a different way of mergers and acquisitions really had an impact on corporate value and the impact of such properties under different circumstances enterprise property significantly different. China’s M&A market needs to achieve further market-oriented reforms in order to enter a virtuous and healthy development track.