The Influence Of Payment Method In M&A On Chinese Domestic Corporations

Along with our country’s economic system reform, from the planned economy to market economy,and the full-scale and further deepen the reform of non-tradable shares, standardized and mature capitalmarkets, China’s M&A market ushered in the new round of rising, with the scale enlargement of mergersand acquisitions, payment of the single already cannot satisfy the reality needs, hindered the rapiddevelopment of China’s M&A market. Merger related laws and regulations promulgated by the statecouncil in2010as "on promoting the opinion of the enterprise merger and reorganization of the securitiesand futures commission in2011issued the measures for the administration of material assets reorganizationof listed companies also encourages enterprises mergers and acquisitions to speed up the industryconsolidation, adjust industrial structure, encourage the use of a variety of payment. M&A payment methodas one of the most important link in M&A process, different means of payment will affect the acquisition ofboth asset structure and financial performance and so on various aspects, not only affect the implementationprocess of the mergers and acquisitions and mergers and acquisitions can complete, even after the mergerintegration also can produce the indirect effect, and not only its theoretical research is weak in our country,and the payment form is single, limited to cash payments, the lack of diversity and innovative, lags farbehind the European and American developed country, in the concrete implementation is difficult, theseproblems have seriously hindered the development of M&A in our country, research on the influencefactors of the choice of payment has a strong theoretical value and practical significance.This paper combines of literature research and case studies, firstlyuses the literature methodology,summarizes the existing research results, summarized the domestic and foreign scholars about the study ofM&A payment method and the present situation of the M&A payment method at home and abroad, basedon the analysis of all kinds of payment such as cash, equity to pay, warrants, convertible bonds, assetreplacement, debt and hybrid securities, and other means of payment to pay, on the basis of applicablerange and advantages and disadvantages, from the influence of external factors affecting factors such as thelaws and regulations, the tax policy, the influence of the capital market maturity, and the influence ofintermediary institutions and improve the level and the internal factors such as merger and acquisition enterprise’s financial position and capital structure, the influence of M&A financing ability and the futureinvestment opportunities, merger and acquisition of shareholders and management attitude, trade both sidesof the industry and trade size, the two sides share value judgment on the M&A party summarizes theaspects such as enterprise in the choice of payment when the impact.Then select typical cases of Dalian Wanda group researches in merger and acquisition of AMC moviecompanies, shareholders and managers’ attitudes are analyzed in detail, financing ability, maturity of ourcapital market, merger and acquisition time constraints, information transmission and other influencefactors on the Dalian Wanda group choose payment in cash acquisition of AMC film company, andanalyzes the Dalian Wanda group M&A AMC movie companies choose cash payment (i.e., one-timepayment of$2.6billion in cash for part of AMC movie companies100%of equity and debt) the advantagesand disadvantages, and from the point of view of quantitative analysis of the cash payment and the size ofthe equity acquisition cost payment.Finally summed up the present six problems of M&A payment method: choosing payment myopic,don’t pay attention to long-term benefits, less M&A financing channel, low degree of marketization,intermediary institutions supporting industry is not developed, such as incomplete legal norms and so on,targeted put forward the perfect capital market, strengthen the capital market resource allocation function;Refine the related laws and regulations, perfect the payment supporting regulations; Perfect the listedcompany ownership structure and corporate governance structure; Encourage the mixed payment, reducethe risk of mergers and acquisitions; Allow multiple funds into M&A financing; Attaches great importanceto the preparation work before merger and acquisition and merger integration policy Suggestions. In orderto speed up the establishment of the theory of M&A payment system in our country, for the future of ourcountry enterprise merger and acquisition deals in actual operation provide reality basis for the selection ofpayment method, system guidance and decision-making basis, to ensure that enterprises choose the rightmeans of payment, to promote the smooth completion of the mergers and acquisitions, and integration ofthe late effects, has a strong practical significance.Based on the domestic famous of private enterprisesWanda group merger and acquisition of AMCcompany as the research object, compared with general domestic mergers and acquisitions of listedcompanies has its own unique place, such as Wanda group M&A AMC belongs to the cross-border M&A, and it is commonly used in our country when choosing M&A payment of cash plus our country specialbearing debt payments, will highlight the many problems have not been studied before, but, after all, thispaper is presented as a merger cases related research, but in the choice of merger and acquisition paymentan exploration and summary, some problems and the information is biased, can’t focus on all the possibleways, there are many problems not discussed, especially the lack of empirical research, through a largeamount of data collection and data analysis, can be more comprehensive and more intuitive to reveal theproblems existing in the M&A payment, this will be a long-term task.