An Empirical Study On The Impact Of M&A On The Efficiency Of Working Capital Management

Domestic and foreign scholars mainly studied the two aspects of motivation and performance of M&Athroughout the history of the study of mergers and acquisitions, and most of the studies are from the perspective of their own. There is rarely no literature researching the M&A from the micro aspect of the efficiency of working capital managementthroughout the domestic and foreign scholars, let alone the literature of external macroeconomic factors impacting on the efficiency of working capital management of enterprises. Based on the in-depth study of the M&A theory, the efficiency of working capital management and external macroeconomic factors are introduced into the theory of M&A. This paper attempts to study the long-term performancefrom the micro aspect of the efficiency of working capital management in the full control of the external macroeconomic factors and explores the influence onthe efficiency of working capital management and the influence is mainly in what areas in full consideration of the external macroeconomic factors under the condition ofM&A.This article first carries on the theoretical analysis, through mergers and acquisitions and working capital as a starting point,the theories of combing motives of mergers, the performance of M&A and the efficiency of working capital management were carded, and focuses onthe performance of M&A,the measure of the efficiency of working capital management and the influence of external macroeconomic factors to the efficiency of working capital management.This paper designs of the variables in the model and measurement index based on the analysis of the previous literature in the empirical part. The design of macroeconomic variables are used the method of factor analysis and explained by the way of calculating value reference variables in the design of more scientific, all of these make the results more accurate. This paper takes 2006-2011 years China’s A shares non-financial sector 1617 listing Corporation based sample and 2006-2007 years of M&A cases as the observation sample. Themultiple regression analysis with dummy variables and control variables in the model is used, and robustness test well. The empirical results show that, in the full control of the external macroeconomic factors, the merger and acquisition behavior in the completion of the merger after the first year will affect the enterprise working capital management efficiency significantly, and this influence is negative.According to the results, the paper has analyzed the reasons of detailed explanation. Finally,According to the theoretical analysis and the empirical research, this paper draws a conclusion andputs forward some countermeasures to promote the M&A market integration of resources and improve efficiency of capital management of enterprise operation combined with China’s unique political system and economic environment.