The Influence Of Acquisition Experience On The Likelihood Of Subsequent Acquisition

According to the Chinese Government Website message, in order to make full use of the role of the merger in business, the State Council issued a further optimization of corporate mergers and acquisitions market views. The document said:in addition to "backdoor listing" subject to strict audits, mergers and acquisitions of other administrative audits were canceled. The way to pay mergers and acquisitions and pricing was becoming more flexible, all these areas greatly reduce the cost of corporate mergers and acquisitions.The real market of mergers and acquisitions will set off a wave in our country. In addition, as Chinese economic development, many industries need to integrate. Under the premise of the government to actively promote true market, a new round of mergers and acquisitions will appear in our climax. Many companies also put corporate mergers and acquisitions as an important means to seek growth and diversification.Compared with the foreign mature theories and practice, Chinese M & A is still in the initial stage, and we still have a long way to go. The globalization and integration of world economy, and China accession to the WTO, promote the development of Chinese market economy; increase the market competition pressure that Chinese Enterprises are facing. The state-owned enterprises are even more so. This forced many enterprises to expand their scale and to seek greater development opportunities through mergers and acquisitions. With the development of M & A in China, Chinese scholars began to pay attention to this field, and acquisition related literature has gradually appeared in the core journals. The past academic and practice show that M & A provides the corresponding market opportunities for the development of enterprises, in order to make full use of this opportunity, enterprises must be able to achieve business integration, restructuring of internal and external resources effectively. We cannot achieve the effect of all without the summary and accumulation of experience that we learn from the past. It is critical to the success of future M & A that learning knowledge from therefore M & A and do a summary.Based on the literature review related to mergers and acquisitions, this article from the perspective of organizational learning theory to start that business through studying from acquisitions in the past, will gradually form their own set of rules for practice, and then produce an invisible influence to the enterprise’s next decision. At the same time, this article also studies the effect of capital structure and corporate governance structure to the enterprise merger behavior.This paper uses China’s Shanghai and Shenzhen motherboard A shares of listing Corporation merger events from 2007 to 2012 as the research object. Using Cox proportional hazard regression model, we analyze the influence of experience in mergers and acquisitions, the ratio of debt to asset, the proportion of independent directors and the ration of shareholding that senior executives hold for the enterprise merger behavior.The empirical results show that, there was significant positive correlation between the likelihood of continuous M&A and the corporate experience in mergers and acquisitions, the asset liability ratio, the ration of shareholding that senior executives hold. The proportion of independent directors and the likelihood of continuous M&A have significant negative correlation. These empirical results show that, enterprises need to learn from the past experience, to summarize from the acquisition in the past, to access to relevant experience that can be used in the next M&A. At the same time, in order to avoid the blindness of M & A that the enterprises continuously do, we should give managers sufficient time for learning, to slowing the merger and acquisition process. Enterprises can appropriately increase the proportion of independent directors, at the same time the shareholding company executives should maintain in a suitable level. Finally, we need to strengthen the importance of experience learning, improve the overall learning ability and management efficiency. Make the organization into a learning organization, to improve the efficiency and validity of decision, and to further enhance the core competitiveness of enterprises.