The Process Of Marketalization,Customer's Bargaining Power And The Enterprise's Vertical Merger And Acquisition

Vertical merger and acquisition(m&a)are mergers and acquisitions of two or more companies in the same industry chain on a merger type,and it can be divided into forward m&a(closer to raw materials)and backward m&a(closer to customers).There are many reasons that will influence enterprises' m&a and many scholars at home and abroad have done much research on motivations for it.Combining with China's economic environment,it is considered that,along with the deepening of the vertical m&a in recent years,it has gradually become one of the most important types of m&a in China.The main purpose of the vertical m&a of Chinese enterprises is to save transaction cost,to stabilize element resources and to control the terminal sales channels.However,whether the customer bargaining power will influence or how to influence the vertical m&a of enterprises has not been researched greatly,which has become the focus of this paper.As we all know,China's economy is continuing healthy and continuous development,is in an important stage of economic transformation,As a representative of the emerging market countries,there is the economic development of all regions of central and western China is very different,showing a nonequilibrium state.Depending on the mode of development,level of economic development in all regions of China,the process of market environment and capital structure,capital accumulation way there is a big difference.When the market environments are different greatly,the enterprises' management decisions are also facing with a great many choices.More and more scholars have found the differences of the emerging market countries and the developed countries in the institutional environment,and some of them have researched on how the special institutional environment can affect the behavior of the enterprises.With methods of descriptive statistics analysis,univariate analysis,regression analysis and robustness analysis,this paper has studied on listed companies' vertical m&a behaviors and the influence of its result from the perspective of transaction cost and the relative bargaining power,in order to verify our hypothesis and get the conclusion.It is found that,the greater the customer's bargaining power is,the more tendency the enterprise has to choose m&a;however,the enterprise's vertical m&a motivation will be affected by the development degree of the regional market.With the improvement of marketization degree,the influence of the customer's bargaining power on m&a behavior will diminish significantly.Further study found that,enterprise'svertical m&a will help to save transaction cost,but this effect is different obviously when the customer's bargaining power is different.From the perspective of transaction cost and the relative bargaining power of enterprises,this paper provides the financial stakeholders' empirical evidence of affecting enterprises' vertical m&decisions,and it also provides a possible explanation to expand enterprise vertical m&a theory.