An Empirical Analysis On M&A Model, Asset Specificity And M&a Value

Mergers and acquisitions(M&A)is an important strategic way for an enterprise to grow and develop.With the development of the waves of M&A,the enterprises of growing phase have joined the M&A army,and in recent years the momentum of M&A becomes stronger and stronger.This paper aims at providing an M&A model which can bring the greatest value to the enterprise of growing phase by using the theory of Industry Life Cycle and the theory of Asset Specificity.On the one hand,it resolves the conflict between the existing research results on M&A value and enriches the theoretical research on the value of M&A;on the other hand,it puts forward more scientific suggestions on which M&A model should be optimal for the enterprise of growing phase.Thus,566 M&A samples in the enterprise of growing phase were chosen from Shanghai Stock Exchange and Shenzhen Stock Exchange with the sample period from 2011-2015.This paper adopts adjusted Tobin's Q value to measure the value of M&A to eliminate the influence of annual and industry factors.The explanatory variables include M & A model,asset specificity and interaction item between M&A model and asset specificity.Based on the M&A events in the growing industries,a multivariate linear regression model was constructed to analyze the comprehensive relationship between M&A model,asset specificity and M&A value.The study draws the following conclusions:(1)In general case,the enterprises of growing phase can achieve best M&A value when they implement the M&A horizontally and achieve worst M&A value when they implement the conglomerate M&A.(2)Once the M & A in growing industry occur,the high asset specificity can promote the value of M&A.(3)Once the M&A in growing industry occur,the higher asset specificity is more effective in promoting the value of vertical M&A.The enterprises of higher asset specificity can achieve best M&A value when they implement the M&A vertically rather than horizontal M&A and conglomerate M&A.At last,this paper puts forward some suggestions for M&A activities.