M&A Financing,capital Structure And M&A Performance

M&A is an important way for enterprises to expand the scale,resource integration and leapfrog development,according to the wind acquisition of library data,it shows that the total amount of China's M&A activity increased year by year.In 2015,the average per deals involving an amount of about 465 million yuan,as for large enterprises mergers and acquisitions can significantly influence the capital guarantee the necessary premise of successful mergers and acquisitions activities.To obtain sufficient capital support,you not only need to have a clear understanding of different ways of M&A financing,but also should know well what the way how the different financing methods of M&A performance influence the M&A performance,so as to choose the suitable way of M&A financing,enhance the performance of mergers and acquisitions,improving the value of enterprises in market.The existing research about performance after mergers and acquisitions mainly focuses on the way how the payment of mergers and acquisitions works,the study on the way how the financing of mergers and acquisitions influencing the performance after mergers and acquisitions is very less.Besides,part of the literature do not have a clear distinction between the method of mergers and acquisitions financing and the method of mergers and acquisitions payment.This article from the information asymmetry theory,capital structure theory,balance theory,put forward three research hypotheses about the performance of mergers and acquisitions.Based on the A shares of listed companies which have merger and acquisition activity as the research sample from 2012 to 2015,carrying out an empirical study after the screening aiming at checkout the hypothesis in this paper.At the same time,in order to improve the reliability of the conclusion,this paper adopts the method of substitution key variable to test the stability.The conclusions of this paper are as follows:1)Compared with non-equity financing,the mergers and acquisitions with equity-financing can bring significant positive cumulative abnormal return from the two grade market;2)Mergers and acquisitions' financing have a significant impact on the performance of mergers and acquisitions through the capital structure,when the buyer choosing equity financing while the changes of capital structure before and after the mergers and acquisitions is very small,the method of M&A financing can directly impact the performance of mergers and acquisition significantly.3)when the buyers choosing with equity financing while there is a large adjustment tawards to the optimal capital structure,mergers and acquisition's financing through the impact on capital structure indirectly significantly influence the performance of M&A.Finally,according to the research theory,research hypothesis and research conclusions,this paper puts forward some relevant policy recommendations,and gives a brief description of the scalability of this paper.