Study On The Effect Of Agency Conflicts On SJ’s Financial Performance In M&A Integration

In our economic structure,state-owned enterprises have occupied the dominant position.To adjust the pattern of state-owned economy,the Fourth Plenary Session of the15 th CPC Central Committee put forward the principle that “the strategic adjustment of the layout of the state economy should be combined with the adjustment of the industrial structure,some enterprises are needed to be enlivened while the others are not”.And since then,to implement the strategy for competitive fields that “the state economy out and the private economy in”has been one of the most focal topics in China.In the process of the structural restructure and adjustment of state-owned enterprises,it is not only beneficial to optimize the allocation of market resources,adjust the industrial structure,but also can promote effectively the sustainable development of our national economy.After the withdrawal of state-owned enterprises from the competitive industry,the enterprises in M&A integration should be the realization of the optimal allocation of resources as the primary purpose,to focus on M&A integration in the corporate culture,human resources,organizational structure and other aspects of integration,especially state-owned enterprises under the influence of human resources integration.Daily chemical industry is not only closely related with the daily life of the people,but also one of the industry which has opened up earliest and developed most rapidly in China.With the continuous progress of urbanization,the booming real economy and growing domestic demand,the domestic brands are rising rapidly and the competition is increasingly fierce in daily chemical industry.Although more and more enterprises have completed the construction of industrial chain and brand strategy through M&A,the performance is not the desired effect in daily chemical industry.From the perspective of the impact of agency conflicts between major shareholders and management layer on the financial performance of M&A integration,this paper chooses SJ firm as the case,to compare and analyze the financial performance of the firm before and after the conflicts.The results show that:(1)The agency conflicts of interests were more than the conflicts of cognition in M&A integration of domestic listed companies and the main reasons that led to agency conflicts between the major shareholder and the management layer were the imbalanced internal governance structure of the firm;internal governance structure imbalance,internal governance deficiencies,both sides of the correlation,payment methods in M&A integration.After the M&A,the implementation of equity incentive could be closely related to the interests between executives and thefirm,and further increased the possibility of conflicts between major shareholders and management layer;(2)The emergence of agency conflicts in M&A integration has a negative impact on SJ’s financial performance;during the conflicts,the firm’s operating capacity is the most affected,the profitability and growth ability also had a certain negative impact,the innovation ability has been reduced and the performance of solvency is unobvious,the comprehensive financial declined in volatility;totally,the conflicts has a significantly negative impact on SJ’s daily capital operation efficiency,profitability and development potential,the innovation ability and comprehensive financial also reduced.Finally,this paper finds out some suggestions based on these results.