Influence Of Overtaking Culture On Decision-making And Performance Of Merger And Acquisition

Mergers and acquisitions,as a way to achieve the strategic objectives of the company,not only help the company to enter the new business areas and the target market feasibly and operationally,but also provide a path to optimize the allocation of resources.Since the beginning of 2007,the merger market of China has began active,mergers and acquisitions increased year by year.Only the first half year of 2014,the number of the capital market mergers and acquisitions was totaled 2063,involving a transaction value of 1 trillion and 280 billion,which was more than the full year of 2013.Now until the end of 2015,the quarterly merger volume of China maintained at about 40 billion.Statistics indicated that in the case of mergers and acquisitions in China,the growth of Information Technology Industry is particularly prominent in recent years.In order to adapt to frequent changes in the market and maintain the core competitiveness,more and more information technology companies seek survival and development through mergers and acquisitions.However,decision-making of M&A is the result of a variety of factors,non single motivation can be explained.In the traditional M&A theory,through the merger and acquisition,the enterprise can obtain the strategic opportunity and coordinated effect,enhances the management efficiency,obtains the scale effect and so on.With the rise of behavioral finance,some foreign scholars have found that the personal characteristics of managers and psychological bias is the main reason for the merger and acquisition decisions.So,as the enterprises' spirit of wealth and direction in the production and management activities and management activities,the enterprise culture can also be further extended to the enterprise's decision-making.Radical corporate culture,such as overtaking,whether it is more likely to lead to M&A decisions.At present,there are few literature about mergers and acquisitions influenced by overtaking culture.The conclusion of literature reflects the negative influence of overtaking culture on the performance of M&A.Therefore,this paper focuses on the impact of overtaking culture on the decision-making and performance of mergers and acquisitions,what means that overtaking-cultural enterprises are likely to lead to excessive investment,which may increase financial risk and reduce synergies on the way to seek M&A targets,which surpass the cultural enterprises in actively seeking acquisition targets,while the financial slack reduce the impact of these factors on the performance of enterprises after mergers and acquisitions moderately,and play a positive role in promoting the performance.I hope that my paper may provide theoretical support and experience reference for the M&A of China's information technology enterprises.