An Empirical Study On The Effects Of Overseas M & A Payment Options On Performance

Since China’s accession to the WTO, Chinese enterprises oversea mergers and acquisitions has significant growth both on the number and volume of transactions, especially by the global economic downturn since2008, global M&A activity declined, the number of overseas assets is undervalued value of the stage, so that Chinese enterprises’ overseas M&A have a good opportunity. Although earlier cases of M&A have some failure history, but did not reduce the enthusiasm of Chinese enterprises in oversea mergers and acquisitions. There are more and more the subject of domestic M&A research, but research on Chinese enterprises’ overseas M&A has just begun, mainly because of Chinese enterprises in oversea mergers and acquisitions in recent years have a rapid increase. Whether it is domestic mergers and acquisitions or oversea mergers and acquisitions, M&A performance which is a core issue of mergers and acquisitions is an important indicator to judge the M&A success or failure. In mergers and acquisitions transactions, the payment is a very important part and also the last part, has a crucial role for the transaction is ultimately the success. Chinacurrent rapid development of overseas mergers and acquisitions, give the payment research for the performance a great practical significance.In this paper, use the theory of capital structure under asymmetric information theory, signaling theory, corporate control theory, by using the event study method, the operating performance of Comparative, five years data from2006to2010,120cases of M&A events for the samples studied in the cash payment and stock of payment, the payment for the performance of short-term and long-term effects. By the two methods of research, we concluded that:M&A payment method affect the performance of the M&A, refer cash and payment, cash payment in the short term impact on performance is superior to stock payment. However, the performance of the long-term, stock payment perform better than cash payment.Compared with previous studies, the innovation of this paper is the first choice of subject is relatively new, first, the relatively new research direction, perspective on China’s overseas M&A Performance Study. Second, the span of sample selection, the data is relatively new. The data pool is large cover Chinese enterprises in oversea mergers and acquisitions in2006-2010.overseas M&A is still paid in cash based now, stock payments and other payment methods using relatively small samples based on different payment methods is still limited, need further enrich the variety of payment methods research in M&A market. For this time study, some other factors are not considered, only consider the one-year post-merger financial data, also need further research.