Research On The Influence Of Investor Sentiment And Managerial Overconfidence On The Performance Of Cross-border M & A

The implementation of the split share reform in China has promoted the emergence of a new round of mergers and acquisitions(M&A)of listed companies,also promoted the vigorous development of cross-border M&A.Traditional financial theory assumes that markets,investors and managers perfectly rational effectively,some of the M&A and cross-border M&A performance anomalies lack explain ability.Therefore,this article based on the research of behavioral finance company perspective,combined with managerial overconfidence,investor sentiment theory,analyzes the investor sentiment,managerial overconfidence influence on cross-border M&A performance and the influence of the path.The research achievements of this paper enriches the research on the effects of behavior finance of cross-border M&A performance,also for our country to improve the corporate governance mechanism of listed companies,set up scientific investment decision-making mechanism,and to protect the interests of the shareholders in cross-border M&A activity provides empirical support.This article exist in China's capital market investors irrational and irrational,and the irrational easily lead to irrational investment as the background,reviews the scholars about the investor sentiment,managerial overconfidence of relevant studies on the performance of M&A.Then based on the theory of noise trading,cognitive dissonance theory,emotional generalization hypothesis and arrogant hypothesis theory,combing the investor sentiment and managerial overconfidence affect enterprise cross-border M&A performance,investor sentiment influence managerial overconfidence mechanism,and puts forward the relevant hypothesis,determine the measure method of relevant variables.After established the regression model to test the assumptions,and the research has a conclusion.Finally from the perspective of behavioral finance,how to better promote cross-border M&A performance and how to identify investors and irrational targeted.Those suggestions provide support to better finish for our country enterprise cross-border M&A activities.In this paper,empirical analysis take 33 cases of cross-border M&A events on the Shanghai and Shenzhen A stock market in 2013 as sample,cross-border M&A performance can be divided into short-term performance and long-term performance,respectively tested the investor sentiment for managerial overconfidence,the influence of the cross-border M&A performance;After combining with managerial overconfidence investor sentiment,examine the managerial overconfidence in intermediary effect between investor sentiment and cross-border M&A performance.In this paper,the study found that managerial overconfidence positively related to the investor sentiment;Cross-border M&A performance is negatively related to the investor sentiment;Managerial overconfidence in investor sentiment and the partial intermediary role between cross-border M&A performance.The research content and framework of this article is divided into five parts: introduction,theoretical analysis and the research hypothesis,research design,the empirical analysis and the results and conclusions and recommendations.In the introduction introduces the research background,this paper puts forward the problems for study,and expounds the theoretical and practical significance of this study.Then,to the investor sentiment,the managerial overconfidence and M&A performance has carried on the related literature review and comments;Finally put forward in this paper,the research ideas,research methods,research contents,the basic framework and innovation points.In the theoretical analysis and the research hypothesis to define the concept of relevant variables,and introduces and determine the measurement of variables;Then combed the investor sentiment and managerial overconfidence theory;And investor sentiment is analyzed based on these theories,managerial overconfidence and the relations between and among cross-border M&A performance,put forward the research hypothesis,basis for the following empirical.In the study design first introduced the selection of samples of cross-border M&A and the source of the relevant data,this paper introduces the study of variables and their definition,and on this basis,the empirical model is put forward,and makes an analysis on the model.The empirical analysis and results of the first introduced the short-term and long-term performance calculation of cross-border M&A;After the descriptive statistics analysis;And then divided into short-term performance and long-term performance,separately carried on the correlation analysis,and regression test the investor sentiment on the function of managers overconfidence and the effect of investor sentiment on the cross-border M&A performance,and discusses the managerial overconfidence in the mediation role of relationship between investor sentiment and cross-border M&A performance;Finally has carried on the robustness test.Conclusions and recommendations section first summarizes the research conclusion;after the research conclusion of this article has carried on the discussion,put forward some targeted suggestions;the final analysis,and discussed the limitations of this study,and for the future research direction was prospected.