Empirical Study On The Mode Of Payment,financial Flexibility And The Performance Of M&A

For the purposes of corporate management, enhancing the company’s value is its main goal, which is consistent with the purpose of maximizing shareholder wealth, in order to achieve this goal, the operators will need to pay more attention to the company’s performance. Through mergers and acquisitions, the company achieved a scale goals, When the company adopt a reasonable choice and an acquisition strategy, the company’s acquisition will greatly enhance the performance, when choosing different payment methods, the company’s M & A performance will show different trends. In the mergers and acquisitions process, the company may conduct external financing, while taking cash payments, if the enterprise lack of financial flexibility, when existing a lot of debt financing, enterprises may have difficult repaying interest and principal debt dilemma in the future, the performance will be significantly reduced, if the company maintains a conservative capital structure and cash holdings, the company’s financial flexibility will be more significant, in the cash payment these companies will get a higher performance and the company will be able to respond to get away from future dilemma, when taking the mode stock payments, improper corporate equity financing will make corporate more difficult to have a better growth of stock price and more difficult to have a strong tax credit effect, which will result in a decline in corporate profits and affect corporate’s performance, and if the capital structure of enterprises and cash holdings are more robust, then the company’s flexible financial will be more significant, in the stock payment these companys will get better performance and the company will be better equipped to deal with difficulties in future.Reviewing the thesis and on the basis of M & A performance and financial flexibility of the original study, launched to analyze the relationship between financial flexibility and M & A performance under the different methods of payment. In this thesis, to take the data of the 5 years from 2008 to 2012 as the research sample, sample data is divided into cash payment and stock payment in payment, and to study the financial flexibility from capital structure and cash holding, using SPSS statistical software, and using multiple regression to analyze the change of M & A performance in different methods of payment, and to study the relationship of the financial flexibility and M & A performance in different methods of payment.Through the research, this thesis draws conclusions as follows, firstly, the change of M & A Performance under the different methods of payment are different, the change range of M & A performance in cash payment is higher than that in stock payment, and in cash payment M & A performance showed an upward trend, but in stock payment M & A performance shows a dowmward trend. Secondly, there is positively related between financial flexibility and performance of mergers and acquisitions, but in stock payment the correlation is not significant, indicating under the different methods of payment the companies with flexibile financial acquired improved M & A performance. By the conclusion of the study, in mergers and acquisitions the companies met the choice of payment, when choosing the way with financial flexibility, mergers and acquisitions performance can be improved.