Research On Multiple Positions Of Directors And Corporate M&A Performance

Under the background of the global economic recession and the urgent need to adjust the domestic economic structure,China's economy is in a critical period of industrial upgrading and transformation.Most industries are in the stage of optimizing the allocation of resources.The transaction amount of China's corporate mergers and acquisitions in 2014 reached 700 billion yuan,and exceeded 10,000 billion yuan in 2015.In 2016,the scale of mergers and acquisitions set a new records,reaching 13,000 billion yuan.Emerging industries,such as the Internet,has begun to integrate the industry through mergers and acquisitions,for example Youku and Tudou,Didi and Uber.In recent years,the reform of the supply side of the traditional industry,also provided some opportunities for mergers and acquisitions.China is in a new stage of mergers and acquisitions.M&A activity is a way to optimize the allocation of resources.It is of great significance for macroeconomic environment and the individual level of the company.In this research field,the performance of mergers and acquisitions is under concern especially.In recent years,the relationship between corporate governance and M&A performance has attracted the attention of the academic community.The research object of this paper is the relationship between multiple positions and the performance of mergers and acquisitions.The multiple positions of directors are mainly measured from two aspects: one is the combination of the chairman and the general manager,and the other is the interlocking director.In previous studies,the combination of the chairman and the general manager is one of the variables of corporate governance structure research.The research of interlocking directors is more from the connection of the board directors.From the perspective of corporate governance,this paper studies on the relationship between them and the performance of mergers and acquisitions.In this paper,we choose the M&A events between 2013-2015 in the Shanghai and Shenzhen Stock Markets of A-Share in China,to study the relationship between the multiple positions and the performance of mergers and acquisitions.The conclusions are as follows:(1)There is no significant relationship between the combination of the chairman and the general manager and the performance of mergers and acquisitions.(2)There is a negative correlation between the interlocking directors and the performance of mergers and acquisitions.The existence of interlocking directors will reduce the performance of mergers and acquisitions.(3)The chairman and general manager of the combination of the two functions and the role of the interlocking board of directors for mergers and acquisitions performance is negative.Based on the above findings,this paper puts forward the following suggestions:(1)Enterprises in mergers and acquisitions,should continue to maintain a cautious attitude,do not reduce the merger process as transfer request.(2)Improve the protection mechanism of minority shareholders in China's securities market.(3)Improve the level of corporate governance.