Research On The Influence Of CFO’ Professional Competence On Mergers And Acquisition Cost

Along with capital flows intensify and fierce competition between enterprises, M&A has become the most important way enterprises high-speed development and to improve their competitive advantages. But instead of benefits of M&A, most enterprises are faced with a series of questions posed by M&A failure. Analysis of the causes of failure of M&A, the high cost is an important aspect, which including the human factors. As the important participants and makers of enterprise strategic decision, the influence of the level of CFO’s abilities on M&A cost should not be ignored. Therefore, how to give full play to the role of CFO in M&A activities, and ensure the smooth operation of M & A activity are very important.Firstly, on the basis of carding the related research literature of CFO professional competence, influence factors of M&A cost, as well as the relationship between the two, determining the contend and the research methods of the paper. Then, this article defines and explains the related concepts and theories.Secondly, based on the exiting literature, design a questionnaire about CFO professional competence. Choosing the financial management from Beijing-Tianjin-Hebe region as the survey of CFO professional competence to carry out questionnaire test, obtain relevant data on corporate CFO professional competence. Use the factor analysis to analysis the date, obtain three dimensions of CFO professional competence, namely professional knowledge, professional skills and personal qualities.Thirdly, using of higher-order management theory to analysis he three dimensions of CFO professional competence, get the six quantitative indicators, realizing the quantitative goals. Reuse efficiency theory, starting from the purpose of M&A activities, to achieve the quantitative goals of acquisition cost.Finally, choosing the event of company mergers and acquisitions occurred in Shanghai and Shenzhen A-share market as the article sample, through the establishment of regression model between CFO professional competence and acquisition costs to test if CFO professional competence impact merger costs. The results show, CFO professional competence has an impact on the cost of acquisitions of transaction and integration. Then based on the research conclusion, this paper puts forward relevant suggestions about CFO selection and management mechanism.