The Effects Of Enterprise Social Network On M&A Performances

Mergers and acquisitions(M&A)play a significant role in optimizing allocation of resources which have been widely used as a corporation strategy for capital operation.A Chinese M & A market status and forecast report released in 2017 shows that the M & A market in China ushered in an explosion in 2015 and stabilized in 2016.However,the M&A performance was not good.China is a typical "relational" society.Enterprises can ease information asymmetry through social networks,reduce M & A costs and reduce M & A risks.Therefore,studying how corporate social networks affect M & A performance has important theoretical and practical significance for enterprises to improve M & A performance.Based on the theory of relationship strength,the theory of information asymmetry and the theory of alternative learning effects,this paper constructs the relationship model between corporate social networks and M&A and deduces the influence mechanism of corporate social networks on M&A.Regarded Huayi Brothers investment in ZhangQu Technology,Zhejiang Changsheng M&A and Yinhan Science and Technology M&A as the research object,the writer makes a comparative analysis of different social networks in determining the objectives of M & A,reducing the cost of M & A,the role of integration of M & A resources.The results show that: First,corporate social networks help to reduce M & A costs and reduce M & A risks.Comparing ZhangQu Technology and Yinhan Science and Technology,the writer finds that Huayi Brothers will choose a member of the social network as a M & A object.As the social network has the information transmission effect,it helps Huayi to reduce the cost of M & A and the risk of M & A.Second,the experience of social network members can be used as a reference for enterprises to choose M & A targets,and the choice of M & A targets can be influenced by reducing the scope of M & A targets.Third,corporate social networks have a positive effect on M & A performance,which is reflected in the following aspects: increasing sources of corporate income,easing financial pressure and improving industrial layout.Finally,the writer puts forward suggestions on M & A,and suggests that enterprises should choose members with social network relations as M & A targets in order to reduce M & A costs and improve M & A performance.