| In addition to the internal accumulation, M&A have become an important way to promote enterprises’ development and expansion. In western countries, mergers and acquisitions began in nineteenth Century, and it has been flourished along with the industrialization. In the fifth wave of M&A, the developing countries have also accelerated its pace of mergers.At present, China’s economy has entered a period of new normal, which brings enterprises an opportunity for the development of a high value-added operating. Mergers play an important role in obtaining core techniques and in promoting the intensive development. A large number of mergers occurred currently is an appropriate response to the environment. According to the data of Zero2 IPO research center, there are 1,929 merger events occurred in 2014, whereas 1,232 in 2013, and each merger trading was amount to 65 million dollars high. In China’s M&A market at the year of 2014, both the numbers and amounts of transactions that have reached new heights increased a lot. However, Mergers are not always successful. Shanghai Automobile Group holds 51.33% of Ssangyong Motor Company’s shares in 2005, however, due to the unfavorable integration, Ssangyong Group applied for bankruptcy protection four years later. In order to reduce losses, Gome has cut down more than 90% employees of Kuba. M&A’s performance is always a key measurement in evaluating mergers’ outcome. More importantly, as the basis of companies’ growing, asset is the main source of profits. In view of this, the study of asset quality related to M&A will have theoretical value and practical significance.In the introduction, this paper introduced the significance, background and outline of the research, and sorted out literatures related to asset quality and M&A. In the first part, based on early literatures, this paper defined the concepts of the asset quality and M&A, and decomposing 13 indexes from 4 AQ characteristics in order to measure asset quality. This paper also described the theoretical basis of this article in the first part. In the second part, this paper proposed hypothesis firstly based on the theory described before, and then set forth how to obtain the data. Taking 282 enterprises occurring mergers and acquisitions in the year of 2010 as the object of the research, this paper use the principalcomponent analysis method to handle the financial data collected between 2009 and 2013 in order to measure asset quality. The second part also introduced other variables and constructed the regression model to test hypothesis proposed before. The third part is empirical test, this part first made a descriptive statistics of all variables, and made a difference analysis of asset quality to find out the changing trends of it, and then carried out multiple regression to find out factors influencing mergers and acquisitions’ asset quality. Also, robustness test was taken. The results showed that merger decreased asset quality significantly, the cash payment and the higher degree of equity restriction reduced M&A’s assets quality, conglomerate merger and related parties’ merger are helpful to improve the quality of assets. And in the short term, due to the existence of economies of scale, trading amounts is beneficial for improving asset quality; in the long term, due to hubris hypothesis and diseconomies of scale, higher trading amounts reduces M&A’s asset quality. Finally, this paper pointed out the deficiencies of this study and the direction of further study, putting forward some reasonable suggestions.The contributions of this paper are that finding a new perspective on the study of M&A, designing Indexes that measure asset quality with logical and innovative thinking, excluding industry difference of asset quality’s measuring index. |
PDF Full Text Request