Research On Managerial Ownership,Agency Cost And Performance Of Transnational M&A

The western developed countries led by the United States set off the fifth wave of cross-border mergers and acquisitions in the world in the late 20th century.Cross-border mergers and acquisitions are an important means for companies to enter the international market and help companies achieve strategic expansion,but still have cross-border M&A Dominated by developed countries.In 2016,the sixth wave of cross-border mergers and acquisitions globally began.China ranked first in cross-border M&A transactions and surpassed the United States for the first time.This has also attracted widespread attention from domestic and foreign scholars,and to more complex international market management.Does the managerial ownership play a role in promoting M&A performance?Based on principal-agent theory and information asymmetry theory,this paper discusses the relationship between management shareholding and cross-border mergers and acquisitions(M&A)performance,and adds proxy cost as an intermediate variable to study the influence path of management shareholding on cross-border M&A performance.First of all,this paper combs and analyzes the relations between domestic and foreign scholars on the proportion of management holdings,agency costs and cross-border M&A performance.Secondly,combining the research of domestic and foreign scholars and the special institutional and cultural background in our country,this paper analyzes the relationship between management shareholding,agency costs and cross-border M&A performance from the theoretical level.Then we use factor analysis to evaluate the performance of cross-border M&A of listed companies in our country,get the score of M&A performance,and establish the regression model for empirical analysis,and draw the conclusions of empirical research.Finally,combined with the background of our country's system,it puts forward some suggestions and opinions on how to improve the performance of Chinese listed companies' cross-border mergers and acquisitions.This article is based on listed companies that have implemented cross-border mergers and acquisitions between 2009 and 2014.Through the study of shareholdings,agency costs,and cross-border M&A performance from the year before to the second year of each merger and acquisition,it is proven that for the year of mergers and acquisitions and one year after mergers and acquisitions,China There is a significant positive correlation between the shareholding ratio of the listed company's management and cross-border M&A performance.The agency cost plays an effective mediating role.In addition,the shareholding ratio of the management itself can influence the cross-border M&A to a certain extent.