Research On Relationship Between Corporate Governance And M&A Performance Based On The Perspective Of Enterprise Life Cycle

As we all know, with the rapid development of the M & a market, enterprises have realized that M & A can help enterprises to achieve the rapid growth of the scale, and to achieve the optimal allocation of resources in the market. China’s M & A activity started at a late, but with the gradual improvement of China’s capital market, M&A activities carried out by the listing corporate gradually presents new features. This new change and trend requires the academic circles to widen the research framework and research field of enterprise merger and acquisition. As a corporate strategy, Mergers and Acquisitions strategy will undoubtedly be affected by the corporate governance mechanism. And the company is in a different life cycle, the corporate governance structure and the choice of the acquisition mode will be different, resulting in the performance of mergers and acquisitions will have a greater difference. Therefore, this paper will be the corporate life cycle, corporate governance and M & A performance into a research framework, and the use of theoretical and empirical research methods, the relationship between the three conducted in-depth studies.In this paper, the relationship between corporate life cycle, corporate governance and performance of M & A is studied through the selection of all M & A events in the 2010 years of C hina’s listing Corporation in the M & a market. First to the domestic and foreign relevant research literature were reviewed, analyzed the interaction mechanism of the enterprise life cycle, corporate governance and the performance of M & A, and then put forward the research hypotheses, by using multiple regression model, with measurement software on the sample data for empirical analysis, relationship between enterprise life cycle, corporate governance and the performance of M & A conclusion. Study found that: ownership concentration is weak, equity balance high degree of governance structure, it is more advantageous to the company’s M & A performance; top management incentive is conducive to improve the performance of the company’s mergers and acquis itions; board of directors scale appropriate to expand is conducive to improve the performance of the company’s mergers and acquisitions. Two part-time enterprises are conducive to the company’s M & A performance. Based on enterprise life cycle perspective on the relationship between corporate governance and M & A performance, the researchers found that in a recession period and the growth stage of listed companies, ownership concentration degree will help the performance of mergers and acquisitions, and in the mature stage of listed companies, equity balance degree, the higher the conducive to the performance of merger and acquisition, the larger board will scale will be more conducive to the company’s M & A performance. In the growth stage and mature stage of listed companies, executive stock ownership incentive to conducive to the performance of mergers and acquisitions, and when the company is in decline phase, top management shareholding can’t improve the performance of mergers and acquisitions. Listing Corporation is in the stage of development, the scale of the board of directors of the company will have a negative impact on the performance of the company’s mergers and acquisitions; the two job separation is conducive to the performance of the company’s mergers and acquisitions. In addition, this paper also demonstrates that the merger activity of the Listing Corporation is a different industry, corporate governance structure on the impact of mergers and acquisitions performance will be significantly different. Finally, based on the conclusions of the study, this paper draws some useful enlightenment.