Research On Relationship Of Financing Constraints, Payment And M&A Performance

The merge and acquisition(M&A) activities of enterprises are becoming quite lively in recent years. It plays an important strategic role in the development of modern enterprises. Meanwhile, it is good for corporation expansion and company value promotion. Moreover, Mode of payment is the last key link of merge and acquisition and it determines the success of Merge and acquisition; M&A Performance can be applied to inspect the growth situation of company value after the resources integration of merge and acquisition.Nowadays China is going through the economic restructure period and the capital market is not mature. Under these circumstances, financial restriction is becoming the core tough issue in the process of enterprises M&A. The paper combines different kinds of related theories, for example: Scale economy theory; Transaction cost theory; Information asymmetry theory; Diversification theory; Synergy effects theory; Agency cost theory; Pecking order theory and so on. Meanwhile, we do some overseas and domestic literature reviews about the research on the effect of M&A performance affected by financing constrains and payment mode. Then, we collect 391 data of listed companies between 2009 and 2013 from Shanghai and Shenzhen Stock Exchange. The thesis employs several control variate, for example: Company scale; Transaction scale; Asset-liability ratio; Industry relevance; Tobin`s Q ratio and so on. Then we build the model of financial restriction, payment mode and M&A. At last, we apply positive analysis and draw the conclusions below:First, theoretically speaking, the literature review presents that most scholars just chose one factor to do research and lack of the consensus conclusion. Based on these previous researches, the paper analyzes from the new three perspectives of financial restriction, payment mode and M&A.Second, it illustrates that financial restriction has positive impacts on payment mode and it has a remarkable correlation.Third, it indicates that payment mode also has positive impacts on M&A and it has a significant correlation. Especially, the influence on M&A is more remarkable after the first and third year of M&A.There are two aspects of value of the paper: first, we put forward a new direction for future study on M&A performance; second, no matter scholars at home or abroad, they ignored the indirect effects of company performance affected by various payment modes. What is more, we classify enterprises by the standard of financial restriction and research the deep influence on M&A performance affected by financial restriction, which makes the results more detailed. Besides, the paper makes one more step forward to the M&A performance theory and it helps to improve the guidance level of company M&A strategy.