The Effect Of Mergers And Acquisitions Types On The Efficiency Of Internal Capital Market

M&A wave sweeping the world,enterprises in China can not be avoided.M&A have a severe impact on enterprises.The real demand impels active research on M&A in theory field.The main research results focus on M&A motivation and performance.Theory and practice field have been widespread concern about the theory of internal capital market since its emergence and theoretical research and practical application have been increasing.M&A influences enterprises from the external and internal capital markets play a role in the internal,which means the combination of the two has a theoretical and practical significance,and existing research in this area there are gaps.It will be taken as the starting point to analyze the impact of M&A on the internal capital market and its efficiency dynamically and holistically,exploring the mechanism.Then focuses on the impact of the M&A type on the internal capital market and its efficiency.This study will enrich the theoretical framework of the internal capital market research and have a certain practical significance on understanding the mechanism of the internal capital market resource allocation,rationalizing the M&A and enhancing the internal capital Market efficiency.It is helpful to guide enterprises make choice on different types of M&A when in different levels of diversification and make a reasonable decision.In this paper,the author summarizes the previous research and puts forward the research topic,and then carries on the theoretical analysis and the empirical test,and finally draws the conclusion.First,the paper analyzes the impact of M&A on internal capital market and its efficiency from three aspects:M&A motivation,M&A process and M&A acquisition.It is found that the effect of M&A on internal capital market and its efficiency is bidirectional.The result shows that M&A has a positive effect on the efficiency of internal capital market.Secondly,the types of M&A are divided into related M&A and unrelated M&A,and the relationship between diversification and unrelated diversification are discussed.And the two types of M&A are analyzed from three aspects:resource allocation efficiency and investment opportunities,information control and transaction costs,market forces.It is concluded that the type of M&A has an influence on the internal capital market and its efficiency,and the effect of M&A on internal capital market is better than that of unrelated M&A.The results of the empirical test of M&A group are also consistent with the theoretical analysis.At the end of the paper,the paper comes to several conclusions with the conclusion that the M&A decision should focus on influence of the M&A behavior,M&A type to internal capital market and its efficiency,and control the diversification in M&A process.