The Influence Of Network Location Of Cross-shareholding On M&A Performance

As happened before and after the western countries represented by America’s fifth wave of mergers and acquisitions, mergers and acquisitions become important means of enterprise strategic expansion, optimize the allocation of resources. Development of m&a in our country, our country enterprise is entering a period of high rates of mergers and acquisitions, since 2005, our country listed company merger and acquisition between has entered a new stage of development, prompted us to m&a performance from a new Angle of view for research. Cross shareholding is becoming increasingly frequent appear on the capital market of our country, with the deepening of China’s reform of non-tradable shares and the sustainable development of the securities market, the overall scale of cross-shareholdings between Chinese enterprise continuous development in. By the end of 2009, China’s listed companies formed by the mutual investment between holding assets have increased 2000 in 14 billion to RMB 170 billion. Enterprises because of cross-shareholdings and form the link between constitute a distinctive network, known as the corporate cross-shareholdings between networks. This relationship network between organizations in the past few decades, by more and more organizations and strategy researchers attention.Cross-shareholdings in the network embedded in every enterprise has its unique characteristics of the network location, the characteristic is the result of the relationships between members of the network, enterprise position in network affects its ability to obtain knowledge, information and other resources, and impact on business performance. But the study of relationship between organization network existing few studies have focused on corporate cross-shareholdings between networks. In this paper, the social network theory is introduced into the study of cross shareholding, with the help of social network theory to analyze the enterprise position in cross-shareholdings network features, explore the social network perspective of cross-shareholdings between enterprises network location how to impact on m&a performance.Based on this, this paper from 2004 to 2012, involved in the Shanghai and shenzhen A shares cross-shareholdings of listed companies as samples, using social network analysis method, depict China because of cross-shareholdings of listed companies and establish A connection between enterprises network form, use two indicators to measure the csi centricity and structural hole a-shares acquisition and merger case sample corporate cross-shareholdings in listed companies in the network location characteristics of empirical test sample enterprises embedded in cross-shareholdings of listed companies in the network location characteristics influence on the performance of m&a. The results of the study showed that China’s Shanghai and shenzhen A shares cross-shareholdings network belongs to typical scale-free network, each node coupling condition between uneven distribution characteristics, network density was 0.038 on average. Multiple regression results indicate that the centricity indicator of m&a performance and structure of hole has a significantly positive influence, and compared with the state-owned enterprises and non-state-owned enterprises network location feature has a more significant effect on its m&a performance.