An Empirical Research Of The Choice Of Payment Method In Mergers And Acquisitions Of China Listed Companies

As the world economy continues to develop, mergers and acquisitions has become animportant way of expansion and improvement of resource allocation and utilization. Thepayment way of mergers and acquisitions affects the interests of both related companiesdirectly. Therefore, a reasonable payment way of mergers and acquisition transaction is a verysignificant part of the acquisition process, at the same time, it is also play a key role in thesuccess of mergers and acquisitions. Through recent years’ studies, abroad and at honeresearchers has got some achievements in the study of the payment options for mergers andacquisitions. Many existing Experiences have also been confirmed. Whether the choice ofpayment way is reasonable or not becomes an important factor for creating company value.However, what factors need to be considered, the researchers have not yet reached a consensus.Western scholars have already led a very comprehensive study of the factors on these issues,and in their studies, the factors have been divided into macro and micro levels to make thestudy clearer. However, the national and markets conditions in China and western countrieshave a great difference. In that case, the results and theories of Western countries could not beapplied in Chinese companies and markets directly, as it is not scientific or reasonable. At thesame time, domestic research on the impact of the acquisition payment factors also need to bemore deep as Western countries do, rather than apply the standard research results practicaldirectly. What is more, empirical research should be combined, integrated to consider whatpayment methods applied to deal more suitable. The key conclusion is that a reasonablestandard research results of reasonable payment way should be combined with China’snational conditions, and then be confirmed by the data, and finally applied to the Chinese M&A market. To find a good tool for the M&A transaction payment is an important issue worthyof study and discussion among domestic scholars, which also should be addressed in thisarticle.By normative research and combined with China’s national conditions, theoreticallyanalyzing how macro factors and micro factors affect the acquisition method of payment.Besides, using empirical research methods, analyzed how macro and micro factors affect thechoice of payment method in China’s listed companies actually produced M&A transactionsbased on the data of demonstration from2009to2013. What’s more, as the data used in this paper are all from equity division reform afterwards, the timeliness is strong. In order to makethis research more comprehensive, cash payment, equity payment and hybrid paymentmethods are all included in the paper by using the tobit regression model. Of course, the articlealso has some shortcomings, such as not all the payment ways have been put into the analysismodel, and some data is missing.