Research Of M&A Experience On Serial M&A Performance

With the continuous growth of global economy,M&A(merge and acquisition)has become an important way for enterprise to realize development.As the most normal and leading way of enterprise development,M&A gradually show consistency and persistence under the policies of China optimizing and upgrading its industrial structure.As the increasing of entirety M&A occurrence rate,the M&A frequency of single M&A Company is also increased,and presents a new feature of single M&A transformed into serial M&A.M&A is no longer a single decision of a listed company,but a series of strategic behaviors.Considering the transformation of M&A feature,the theories and conclusions of research on single M&A events cannot account for the behavior of continuous M&A.On the basis of the situation,the influence of enterprise M&A experience on continuous M&A performance should be studied,as well as the moderate effect of ownership structure on the influence.First,the pertinent literature of serial M&A and serial M&A performance as well as the correlative research about the effect of ownership structure on listed companies' serial M&A performance were teased and summarized.Then,the organizational learning theory and agency theory were analyzed in detail.Based on the literature review and theory analysis,the assumption was presented: M&A experience has positive effect on serial M&A performance and ownership structure will moderate the effect significantly.In order to examine the assumption presented,the 1st quarter of 2007 to the 4th quarter of 2015 of Chinese Shanghai and Shenzhen a-share listed companies which has conducted twice or more M&A activities as the acquirer were selected as the research sample of serial M&A study.The return on equity(ROE)was applied to measure the operating performance,the buy and hold abnormal rate(BHAR)was selected to measure market performance,M&A proficiency and previous M&A results were used to measure M&A experience,the ownership concentration and ownership property were adopted to measure ownership structure,and multivariate regression analysis was applied to explore the assumption.By the empirical regression analysis of the assumption presented,the following conclusions are obtained.First,M&A experience has positive effect on serial M&A performance.M&A proficiency will promote the operating performance of serial M&A positively.With the accumulation of M&A activities,M&A companies gradually grasp the M&A management process and accumulate the required knowledge and skills of successful M&A decision,the learning curve will come into being,so that they can better guide the subsequent M&A activities.The previous M&A results have a positive effect on both operating performance and market performance of serial M&A.Compared with previous failed M&A experience,the successful M&A experience are more able to guide the subsequent M&A activities and achieve the improvement of M&A performance.Second,the ownership structure can moderate the relationship between M&A experience and serial M&A performance.Specifically,the ownership concentration only has an enhanced moderating effect on previous M&A results and serial M&A performance.The higher the ownership concentration of the M&A company,the higher the correlation of shareholders and company future development,the shareholders are more likely to participate in the company management and supervise the behaviors of administrator.In this way,the shareholders will tend to repeat the previous successful M&A activities and the serial M&A performance will be better.The restrained moderate effect of ownership property on the relationship of M&A experience and serial M&A performance has always been established.Comparing to non-state-owned enterprises,the influence of M&A experience on serial M&A performance in state-owned enterprises is less.Based on the conclusions,some reasonable policy-type recommendations were presented to M&A enterprises,investors and macro policy makers to provide a reference for companies M&A activities.In addition,the analysis on the limitations and prospects of the study was also conducted to provide other scholars some feasible suggestions in future research.