Managerial Power, M&A Payment And Long-term Performance Of M&A

Mergers and acquisitions(M&A) of listed company always is the hot topic of domestic and overseas theory and practice at capital market. Weather M&A is a value creation action or not, it is the core concern of investors and scholars. In recent years,along with the adjusting of industrial structure, the enacting of policies and regulations and the changing of global economic environment, M&A are experiencing a storm rise,attracting extensive attention worldwide. After the split-share reform, Chinese capital market has realized complete circulation,diversification of the payment used more and more widely in Mergers and Acquisitions. Different selections of payment methods affect not only the acquisition of two financial arrangements and the balance of power in corporate control, but also the difference of corporate governance after the M&A, which will affect the performance of the company after the merger.Throughout the cases of M&A in latest three years, not only the number of the case is increasing, the transaction amount of M&A is also rising. Domestic scholars also have done a large amount of research on M&A, and the M&A performance is the most important part of the research. As the judgment of whether the M&A is successful or not,M&A performance has both the theoretical and practical significance in research.Throughout the existing domestic and overseas literatures, the relation between M&A payment method and corporation performance always has not yet formed an accordant conclusion. Within this context, the research of the effect of payment method on company value, both contributing to choosing a proper payment method, and providing references to the government and regulatory agencies on their decision of basic value orientation.Therefore, this essay is aimed at M&A performance, many factors can affect the M&A performance, but this article studies mainly the difference of M&A performance from the Angle of M&A payment, combined with the factor of managerial power in the corporate governance, and inspects the main difference between M&A performance, analyzes the inner mechanism of the enterprise M&A in our country.In this paper, we selects the M & A events of listed companies occurred in 2010 in Shanghai and Shenzhen as samples, we has empirically analyzed the effects of the managerial power, M&A payment on long-term performance of M&A. The empirical results show that compared with the cash payment, long-term performance of M & A based stock payment is better, while compared with the stock payment, the managerialpower has the greater positive influence on long-term performance of M&A when companies used cash payment. The research in this paper provides a good reference for the options of our country companies’ M&A payment and practice guidance.