Research On The Announcement Effect Of The Performance Compensation Commitment By The Material Assets Reorganization In Listed Company

How to reduce the information asymmetry of Target Corp in M&A transactions has been one of the hot topics in the field of international M&A.At the present stage,the PCC,which are different from the foreign earnings payment schemes,are mainly used as the consideration and payment arrangements.It is a incentive compensation contract signed by the two parties in a merger agreement,refers to the difference between the actual value and the predicted value of the underlying trading asset.With M&A tend to be active,more and more listed companies through innovating the consideration and payment arrangements to reduce the risks of asymmetric information on the expected valuation differences,thereby creating value for the two parties.From the qualitative aspect,this paper reviews the development of PCC and difference between two kinds of price payment scheme.Then,using the method of event study and multiple regression analysis,this paper quantitative the overall effect and the three conducting paths under the research samples from 2010 to 2014,including information saving path,incentive compatibility path,compensation constraint path.In the event study method,this paper use the mean test,single factor variance method to analysis the overall performance and existence and difference of the three transfer path.In the multiple regression,this paper verifies that PCC has a significant positive announcement effect.From the three transfer path,this paper finds that:(1)Relation is the difference factor,the non-related acquisition using the PCC has a significant positive announcement effect,which proves the existence of the information saving path;(2)two-way of PCC is not significant on the announcement effect,which proved that the incentive compatible path does not exist;(3)The strong constraint compensation has a significant positive announcement effect,which proves the existence of the compensation constraint path.Based on the above conclusions,this paper puts forward the corresponding policy recommendations from the perspective of securities regulatory authorities,listed companies and investors.