Analysis Of The Impact Of M&A Payment Methods On M&A Performance

There has been five relatively large wave of mergers and acquisitions in recent years in the Western mature capital markets.With the continuous development of China's economy,the mergers and acquisitions have also increased gradually in China's capital market.The mergers and acquisitions has become a strategic means for a listed company to optimize the allocation of resources in the global market.The issue of mergers and acquisitions has also been a hot topic in the capital market.Many enterprises faced more serious business difficulties since the serious financial crisis in 2008,and then the mergers and acquisitions also shows the important role on the transformation of enterprises.As our capital market development is not so mature enough to allow many other payment methods,so there was only cash payments in China's M & A market before 2005.Only a single M & A payment method is to limit the development of large-scale M & A activities,but also affects the integration effect after the merger.After the implementation of the split share structure reform,the choice of M & A approach becomes more flexible.Mainly equity payment and other payment methods are also emerging in the acquisition market.What type of payment method can achieve better M & A performance? On this important issue,Chinese and foreign scholars have done a lot of research,but there is still no consistent conclusion.On the basis of previous scholars' research,this paper chooses the sample of M & A of listed companies in recent years,and uses event research to study the effect of cash payment and equity payment on short-term performance.The results of the study show that cash payments can significantly and positively impact short-term performance after mergers and acquisitions in the short term of mergers and acquisitions;equity payments can also significantly affect the short-term performance of mergers and acquisitions.Finally,according to the results of theoretical analysis and empirical research,combined with the new characteristics of M & A of listed companies in China,some policy suggestions are put forward.Second,vigorously cultivate the intermediary system,so that intermediaries in the M & A market play an important role;Third,let the capital market play the important role,so that mergers and acquisitions more market-oriented;Fourth,with the development of mergers and acquisitions,Encourage financial innovation,so that more diversified payment methods could be used;Fifth,for the main mergers and acquisitions,company should base on their own situation to choose the appropriate payment method.The innovation of this paper lies in the study of the selection point of view,the majority of scholars in the previous study focused on whether the performance of mergers and acquisitions has been made on the issue of acquisition,specific factors affecting the performance of M & A are involved less.This paper mainly studies the impact of cash payment and equity payment on M & A performance from the perspective of payment method.Has a good practical value for the listed companies in the choice of payment methods to provide a meaningful reference and recommendations.From the aspects of research methods,this paper mainly adopts the method of incident research to study the short-term impact of different payment methods on M & A performance and measure the change of short-term performance by accumulating excess returns.