Research On The Influence Of Entrepreneurs' Military Experience On M&A Premium

According to the theory of branding,an individual's early experience will shape its intrinsic values,and influence the individual's behavioral decisions through the external influence of the branding effect.The military experience as a special early experience is an important turning point in the life of the participating soldiers.The personality and psychology shaped in the military career will have a profound and continuous impact on their behavior after retirement.As a major decision of the enterprise,M&A is deeply influenced by the value judgment and decision-making style of the host-side entrepreneur because of its high risk,uncertainty and complex motivation.The value judgment of the entrepreneur depends to some extent.Early experience of the role of value shaping,which affects the final decision-making behavior.Due to the prominent phenomenon of M&A premium in the domestic market,and the M&A premium is the key to determining the success or failure of M&A activities,the premium in M&A decision will be affected by the value judgment of entrepreneurs.Therefore,as one of the early experiences of entrepreneurs,military experience will be a premium for M&A.The impact is the research problem of this paperBased on the above research questions,this paper selects the perspective of branding theory and high-order theory,takes entrepreneurs' experience from the military as an entry point,and uses empirical research method to sample 1706 M&A events of A-share listed companies in China's Shanghai and Shenzhen stock markets from 2010 to 2017.The data is empirically analyzed to examine the influence of entrepreneurs' experience on the M&A premium.At the same time,the degree of competition in the industry is used as a regulatory variable to explore the role of industry competition in the relationship between the two.The study found that entrepreneurs' military experience has a significant positive impact on the M&A premium.At the same time,the degree of industry competition plays a positive role in the relationship between entrepreneurs' military experience and M&A premium.That is,the higher the degree of industry competition,the entrepreneurs experience the merger with the military.The positive effect of the premium is stronger.Subsequent testing of the robustness of the model provides a strong explanatory power for the findings of the above studiesThe contributions of this paper have the following three points.First,the existing research has paid attention to the influence of entrepreneurs'military experience on M&A activities,but it is less involved in the study of premium issues in M&A activities.The research conclusions in this paper help to uncover the impact of individual branding mechanism on business management decisions."Black Box" enriches the research of branding theory and high-order theory in M&A activities.Second,from the empirical conclusion,entrepreneurs' military experience will have a positive impact on the M&A premium,that is,entrepreneurs who experience the military will show their own risk-taking,radical and high-risk ability when participating in M&A decision-making activities.Expanded the behavior research of entrepreneurs in M&A activities.Thirdly,it has beneficially expanded the research of branding theory and high-order theory in the context of military experience.It will help to deepen the understanding and understanding of entrepreneurs'decision-making behaviors and governance mechanismsThis paper has the following management implications:First,the values and personality traits that individuals shape in the early stages of experience will manifest themselves in the business management decisions as the branding process evolves.The brave,adventurous,and radical spirit that entrepreneurs have experienced in their military careers has made them highly risky in their M&A premiums,preferring a high premium.Secondly,for the M&A decision-making activities,from the perspective of the merger and acquisition side,the knowledge and skills training received by the military entrepreneurs in the military is biased towards actual training and physical functioning,and the knowledge in economic theory and management theory is relatively weak.The training of knowledge and skills of military entrepreneurs should be strengthened to reduce the misjudgment of decisions caused by the lack of economic management knowledge,thus minimizing the reduction of invalid investment costs.From the perspective of the acquirer,due to the high risk and risk-taking spirit of military entrepreneurs in M&A and investment and financing decisions,the company has a larger premium for M&A negotiations for military entrepreneurs when selling their own business or transferring shares..Thirdly,this paper finds that military entrepreneurs prefer high-price decision-making in M&A activities,especially when the industry is highly competitive,the more they will stimulate military entrepreneurs'preference for high-value M&A decisions,so the corporate supervision mechanism should be made by entrepreneurs.In the decision-making process,we will exert regulatory power and add value assessment and risk control links for multiple M&A decisions.Finally,because the military entrepreneurs have the dual branding characteristics,the enterprise needs both the heroic and courageous,the eye-catching and the daring of the military entrepreneurs,and the "step by step,steady and steady".When making major business decisions,we should make reasonable choices,take time to act,and make the most correct decision-making judgments to develop and strengthen enterprises.