The Research On The Influence Of Ownership Structure On Diversification M&A Performance

Mergers and acquisitions is a kind of enterprise behavior, it is also an important part in optimizing equity structure and the allocation of resources. In the process of China’s capital market development, the M&A scale is ever greater and the methods are also increasingly rich. For M&A activity research, academics and practitioners has made many achievements. But in terms of the performance of M&A, there is still no consensus conclusion.Since the 1980 s, M&A in the developed countries presents a trend of refocusing strategy, but recently the-number of diversified M&A is still rising in our country. Enterprise diversification management strategy is a kind of an approach of expanding to other related or unrelated industries, which can realize the rapid expansion of business line and the increase of enterprise assets. By ways of inward growth or external expansion, companies usually realize the diversification strategy. However the way of inward growth need companies spend a lot of internal resources, also have to face a variety of unknown risks. As a result, most enterprises will merger and acquire other industry enterprises to diversify strategic objectives.Since May 2005, the China Securities Regulatory Commission announced the launch of equity division reform, and soon the nationwide reform quickly was going on. In March 2014, the State Council proposed to further optimize the enterprise merger and reorganization of the market, specifically to support large enterprises, support M&A and restructuring, etc. And soon the development of China’s M&A market become more and more vigorous. However many scholars always put more focus on the decision-making behavior and the type of payment of M&A, etc, fewer specifically study the diversity of M&A performance from the perspective of completed internal shareholding structure. So based on the analysis of relevant theories about the M&A and the principal-agent theory, combined with the characteristics of ownership structure, this paper study the effects on diversification M&A performance respectively from several aspects.This paper selects 2009-2012 Shanghai and Shenzhen listed companies as part of a representative sample, using multiple linear regression analysis empirical ownership structure of China’s listed companies diversified M&A performance. In order to objectively reflect the true financial performance of listed companies in M&A, we use accounting research method.Firstly, we select a representative of 11 financial ratios constitute a comprehensive evaluation system, and the use of factor analysis were calculated before and after a total of four samples of M&A financial performance composite score. Then we analyze the relationship between ownership structure and diversification of acquisitions efficiency through empirical regress. The final research results found that equity properties have a negative impact on the diversification and performance improvement; ownership concentration and diversification acquisition performance are negatively correlated; diversified ownership balance ability and the performance of M&A improvement are positively correlated relationship. The proportion of manger shares is also related to diversified acquisition efficiency.Finally, suggestions for the conclusion are:companies must have a clear M&A motives and make full use of various enterprise resources. Then companies should maintain a certain state-owned shares, to form a multi-component model of coexistence equity; maintain appropriate ownership structure, and give full play to effect major shareholders while protecting the interests of minority shareholders. Companies also should establish long-term equity incentive mechanisms to promote company mergers and acquisitions, which can continue to improve performance.