A Study On The Mixed Payment Of Mergers And Acquisitions

M & A as a key link in the success or failure of mergers and acquisitions,more and more attention by M & a enterprises.Due to the maturity of the capital market and the perfection of the relevant laws and regulations,the research on the method of payment of M & A has formed a complete system.Because of our country's capital market started late,the relevant laws and regulations are not perfect,M & a means of payment is far from abroad in the rich,merger research field,most scholars in China only focuses on cash payment and stock payment,little research mixed payment,this paper deals with the discovery of the increasing size of the research on the current situation of M & A in the recent years,the use of mixed pay increasingly high proportion of mergers and acquisitions so payment of mixed not only helps to enrich our payment research system,but also to the enterprise merger and acquisition by mixed payment to provide practical guidance,and provide suggestions to perfect the relevant policies and regulations.Taking company A and company B as the research object,Based on the theoretical analysis,this paper made an analysis of the motivation of choosing the mixed payment method of the enterprises from the control,the financial situation of enterprises,and the purpose of the acquisitions.then analyses the economic consequences of mixed payment from the influence on the financial flexibility of the business and the large shareholders and minority shareholders.Finally,we analysis root causes of different economic consequences of company A and B from the perspective of corporate governance and institutional environment.Through case analysis,we believe that it can overcomes the shortcomings of the single cash payment and stock payment by adopted mixed payment in acquisitions.Mixed payment can save cash and debt capacity in large-scale acquisitions activities for enterprises,and also provide financial flexibility for the company in the integration and grasp the investment opportunities after the acquisitions of the company in the future.But we also found large shareholders to obtain the control to make private benefits.when the governance of the company is poor,large shareholder's behavior is not effectively controlled,large shareholders collect the cash in mixed payment by choosing issuing the stock to himself.large shareholders tend to raise the percent of cash in mixed payment payment,then through low-cost access more of the shares of the company,in this process,the control power of large shareholdershave been strengthened,the interests of small shareholders is infringed.When the corporate governance environment is better,the behavior of the major shareholders can be effectively controlled.in the whole process of payment in acquisitions,the interests of the large and minority shareholders can be realized,and the corporate governance environment can be further improved.