The Performance And Influencing Factors Of Equity Acquisition

Equity acquisition is a highlight of capital market,which is an effective measure for listed companies to expand market and improve production.Since 2010,the GEM market has developed rapidly.The quantity and amount of equity acquisition on GEM increase rapidly.After the completion of the equity acquisitions,it is a focus whether the acquisition has improved the performance and which factors are the keys related to it.However,there are few papers pay much attention to it.This paper selects the completed transactions of the GEM equity acquisition as a basis for the research object from 2010 to 2014,adding the equity acquisitions of SME from the same period as a contrast and analyze whether a single equity acquisition event of two types has significantly developed the short-term and long-term performance.After confirming the significant impact,the impact of equity structure and trading characteristics on short-term and long-term performance is discussed by using multiple linear regression analysis.The research found that:(1)the equity acquisition can effectively enhance the short-term and long-term performance of the listed companies on GEM and SME;(2)considering the margin of improvement,GEM is better;(3)in the short term,equity concentration and transaction scale have a significant positive effect on the performance improvement of GEM,while overconfidence has a significant negative impact;(4)in the short term,equity structure and overconfidence don’t have a significant impact on the performance of SME;(5)in the long term,equity concentration and overconfidence have a significant negative impact on the performance of the GEM;(6)over the long term,overconfidence has a significant negative impact on the performance of SME.The stock acquisition of GEM is the main sample,which broadens the research field of equity acquisition.Through the sample selection and long-term performance index adjustment,this paper provides a new approach to study the effect of single equity acquisition in continuous M&A.The results show that the company needs to optimize the shareholding structure,and strengthen the supervision of large shareholders and senior executives to improve performance.