The Research About The Influence Of Ownership Concentration And Modes Of Payment On M&A Performance

In the history of modern economy, M&A(Mergers and Acquisitions) have played a major role in optimizing the allocation of resources and boosting the development of enterprises. Under the background of economic transition, China's economy has stepped into a “new normal”. The government has issued a serious of positive policies about M&A to promote domestic M&A, furtherly, to promote the development of China's economy. During this specific period, M&A is not only about the enterprises' own development, but also has a close relationship with the development of China's economy. Thus, it is of great significance to study M&A activities in order to guide domestic enterprises to make the right decision and to improve the performance of M&A.The thesis illustrates the research results of the influence of ownership concentration and modes of payment on M&A performance. In addition, it gives literature reviews of contemporary research achievements. Then, it defines the relevant concepts, and elaborates the motives of M&A, the influence of ownership concentration on M&A performance and the selection of M&A modes at home and abroad. Based on above and(current/domestic) situation, the thesis builds a research hypothesis. Next, it chooses 104 companies which experienced M&A between 2010 and 2012. Furthermore, the thesis uses financial analysis to evaluate those 104 companies' business performance of one year before M&A, the merger year, one year and the two year after M&A. According to the empirical research, the performance of domestic enterprises which experienced M&A has improvement more or less in the short term. In the long term, the influence of M&A on performance becomes to be less and less, and it appears to have a trend of rise first and then fall. In the second year, the enterprise performance does not show a significant difference before M&A, which means the performance does not have a substantial improvement because of M&A. Moreover, the thesis uses multiple linear regression model to verify the hypothesis. It indicates that ownership concentration does not have a remarkable influence on M&A performance individually. Nevertheless, the interaction of M&A and modes of payment has a remarkable negative impact on M&A performance, and the impact has a positive correlation with the ownership concentration. Meanwhile, the selection of payment modes also prove that equity payment could improve M&A performance dramatically. Finally, according to the research results, the thesis gives advices for corporate governance and M&A including dispersing ownership appropriately, increasing dividends, improving management efficiency, using equity payment mainly, determining M&A targets rationally and so on to improve M&A performance, optimize allocation of resources, and promote enterprises' rapid development.