The Influence Of Equity Structure On Corporate Merger And Acquisition

With the development of market economy, an important mainstay of the market, the company becomes more and more large and complex, due to the modern corporate separation of ownership leads to the on the corporate governance problem is becoming more and more highlighted the importance and equity structure is an important issue of corporate internal governance, equity structure is the foundation of corporate governance, corporate governance structure is the concrete form of the ownership structure.With respect to the internal corporate governance and ownership structure, company merger and acquisition(M & A) belonging to the company’s external competitive market of control right transaction market, market of merger and acquisition activity in the endless that mergers and acquisitions as the controlling power market is the whole market economy is one of the important activities, and internal equity structure is closely linked with the external M & A, the impact of ownership structure on the M & A activities would have a significant impact in the process of M & A, a small change in ownership structure may reflect and ultimately affect the results of M & A at the time of the merger and acquisition(M & A).Internal equity structure with biodiversity, company managers in consideration of the company’s own position in the market and design, general company’s equity will response to the company itself characteristic and the company in the process of development by foreign influence the results, such as accepting investment.Different ownership structure on corporate governance have different effects, ownership structure differences, such as degree of ownership concentration, ownership concentration is high, there will be have great impact on the company shareholders, this time large shareholders decision will affect company merger and acquisition activity, phase to ground, the ownership concentration degree low, any shareholder are difficult to directly determine the company’s decision, then the company in a merger will appear and highly concentrated ownership of the company in a completely different characteristics. Also share structure not only ownership concentration degree of, and a variety of special equity, such as standardization of special shares, or non standardized by company managers given special rights and stock, these stocks contain special equity will affect the process and result of mergers and acquisitions and share in the. In addition to these, the company may also management especially, founder of decision, design unique ownership structure. These structures may be with any other companies are not the same, but due to the managers of the company’s ownership structure design is the reaction of the managers in the company management ideas. Therefore, in the modern market, the equity structure of the company is diverse, on the M & A activity is the impact of the various forms of ownership structure is not the same.Influence of ownership structure in the merger market also will participate in the acquisition of the company’s shareholders have vital effects, and the diversity of the shareholders of the Modern Corporation, the content and scope of the power of shareholders is not the same as in the equity structure of the complex, so if the company appeared in the mergers and acquisitions market, diversified ownership structure may provide protection for the company. The management of the company can be adjusted according to the external environment and transformation of ownership structure to resist against the company and the company itself is not willing to acquisitions, but due to mergers and acquisitions is not always bad news for the company, may be the development opportunities for the company, may also for shareholders, is an excellent return on investment opportunities. So the acquisition or takeover decision-making power is attributed to the shareholders or the management is an important legal problem. From on the other hand, due to the company’s merger and acquisition(M & A) itself is a serious legal problems, the acquisition of the takeover or acquisition of defensive behavior or, any measures must also get legal support, and adjust ownership structure or to set up the special equity structure must be within the scope permitted by the current law, the law of equity structure design of boundary have certain restrictions, managers and any equity structure design must be in accordance with the provisions of the current law, the direct embodiment is the anti takeover measures also need to follow the laws of regulations.