Research On The Impact Of Payment Method On M&a Performance

With the emergence of the new normal of China's economy,there has been an explosive growth in the manufacturing mergers and acquisitions,and the number of transactions and the size of transactions have increased year by year.Mergers and acquisitions can increase the size of the enterprise and also the optimal allocation of resources,so the academia and the government are very concerned about this issue.However,the choice of payment method has an important influence on the performance of m&a,and the payment method will have a very different effect.First of all,this paper summarizes the research literature and research methods on m&a performance at home and abroad.Then reviews the definition of merger and acquisition and merger and acquisition performance,from capital structure.This paper select a sample of 2012 manufacturing industry m&a events,using event study to examine its short-term performance,in terms of long-term performance is investigated for up to 5 years from 2011 to 2015 of m&a performance,using factor analysis and financial analysis.The empirical results show that the cash in the short term can bring excess returns to the main m&a party,but in the long term stock and cash payment for the performance impact of contrast,cash payments for mergers and acquisitions party needs to raise large sums of money in the short term affect the normal operation of the enterprise.Finally,the paper concludes the impact of short-term and long-term payment on m&a performance and puts forward relevant Suggestions on the government and enterprises.