An Empirical Study On The Impact Of Financing Constraints And Payment Methods On M&A Performance

The equipment manufacturing industry is the pillar industry of China's national economy.Though decades of efforts since the founding of New China,the equipment manufacturing industry have made great progress,but it still faces the develop problems of unreasonable structure and unmatched supply and demand.Merger and acquisition(M&A),as an important way for enterprises to expand the scale and optimize allocation of resources,plays an important role in helping enterprises to obtain superior resources.At the same time,M&A is also a effective way to solve the problem that hinder the development of the equipment manufacturing industry in the short term.So,it is necessary to study the M&A activity of equipment manufacturing industry.Firstly,this paper introduces research background and research significance through the introduction.On the basis of summarizing relevant literatures at home and abroad,author put forward the research topic,method and the framework of the thesis,and sum up the innovation of the article.Next,the article provides the definition of the related concepts,and elaborate the theories related to M&A.Then,according to the above theories,this paper makes theoretical analysis and puts forward the hypothesis.On the premise of analyzing the development status and the merger situation of equipment manufacturing industry,this paper discusses the separate effect and the interaction effect of financing constraints and payment methods on the M&A performance of equipment manufacturing industry,and puts forward the hypothesis.Secondly,this paper carried out the empirical design.The study sample is the M&A events of Chinese listed companies in the equipment manufacturing industry from 2013 to 2014.Author design variable and establish the regression model derived from hypotheses.Then it analyzes the empirical results.The M&A performance were quantified by factor analysis in the process of demonstration.Author has carried on the regression analysis,and come to the paper's conclusion.Finally,the paper sum up the conclusions,put up the policy suggestion,and point out the limitations.The empirical results confirm that financing constraint has a positive effect on the M&A performance of equipment manufacturing enterprises;Stock payments help equipment manufacturers to achieve higher M&A performance;Equipment manufacturers with higher financing constraints will prefer the stock payment in the M&A;Equipment manufacturing enterprises with higher financing constraints will acquire higher M&A performance by choosing stock payment.The research of this paper indicates the separate effect and the interaction effect of financing constraints and payment methods on the M&A performance of equipment manufacturing industry.It provide the guided theory for equipment manufacturing enterprises when they should decide to choose what kind of payment method in the M&A.Especially,the enterprises with higher financing constraints need to judge whether it should choose stock payment in the M&A.It has important guidance.At the same time,this paper also provides suggestions for the relevant policy maker.We should improve the capital market,loose finance restraints,and actively promote the diversification of payment methods so that we can build a favorable environment for M&A and actively promote the development of M&A.