The Research On The Relationship Between Financial Slack And Merger And Acquisition Of Manufacturing Enterprises Of The Growth Enterprise Market In China

Merger and acquisition (M&A) is an important means to expand production capacity and increase market share.It is also the basic way to allocate resources and give full play to the production capacity of redundant resources.In 2009,the establishment of the Growth Enterprise Market(GEM)provides a convenient financing channel and growing space for the development of small and medium sized enterprises and new enterprises.Due to the high growth and mainstream of new industries of most of GEM companies,they can usually get the favor of investors,and have a strong ability to borrow and financing,which accelerated the GEM enterprise merger frequency.In the wave of corporate M&A,manufacturing enterprises occupy a large proportion.The current development model of China's manufacturing industry is the input of resource elements,to achieve scale expansion,and this extensive development will lead to excess capacity and bring a lot of organizational redundancy.The problem of how redundant resources influence the enterprise's development strategy has become an important proposition.The previous research on organization redundancy,mainly focus on their own role,the relationship between organizational slack and corporate performance,the relationship between organizational slack and enterprise innovation,and less study on the relationship between organizational slack and M&A.In recent years,there are few scholars have begun to focus on the relationship between organizational slack and M&A on difficult enterprises,but there is no research on the growth of enterprises,And these studies mainly focus on the static perspective,not from the dynamic perspective to observe the relationship between the track of the changes in the redundancy and mergers and acquisitions.In addition,as the managers of the enterprise,the internal and external characteristics of them have a certain influence on the strategic decision of the enterprise.Therefore,it is very necessary to explore the impact of managerial internal and external characteristics--overconfidence and excesss power and the relationship between organizational slack and M&A on the contingency.The level of empirical research in this paper includes two levels: time-varying and time-invarient.In this paper,the use of multi-level linear model to explore the time-varying and the time-invarient financial redundancy and the relationship between mergers and acquisitions.In the time-varying with the enterprise as a separate individual,With the financial redundancy trajectorychanges,corporate mergers and acquisitions will be how to change,corporate mergers and acquisitions will be how to change.In the time-invarient,the horizontal comparison of different companies,analysis of financial redundancy and more enterprises,their mergers and acquisitions will increase.And introducing CEO overconfidence and ownership power,to study how they common and cross level regulate the relationship between financial slack and M&A.The conclusions of this paper are as follows:(1)Time invariant and time varying available slack of the company can be used to promote the behavior of M&A.(2)Time varying recoverable slack can be restored to the positive impact of M&A,and no significant relationship between time invariant recoverable slack and M&A.(3)No significant relationship between time varying potential slack and M&A,and time invariant potential slack is positively related to M&A.(4)The combination of CEO overconfidence and ownership power positively regulat the relationship between time invariant available slack and M&A,and forward cross layer regular the relationship between time varying available slack and M&A.(5)The combination of CEO overconfidence and ownership power plays a positive contingency part in the relationship between time invariant recoverable slack and M&A,has no contingency relationship between time varying recoverable slack and M&A.(6)The combination of CEO overconfidence and ownership power plays a positive contingency role in the relationship between time invariant potential slack and M&A,has no contingency relationship between time varying potential slack and M&A.In this paper,the research on the relationship between different types financial redundancy and M & A may provide a new idea for the future research in this field,and some theoretical support for the motivation of China's GEM M&A.