Analysis On The Influence Of Payment Premium On M&A Performance Of Listed Companies In China

In recent years,with the completion of the equity division reform,China's securities market mergers and acquisitions activities have become extremely active.In particular,the financial crisis in 2008 and the industry integration in 2013-2015 have pushed M&A and restructuring activities one after the other.climax.At the same time,because of the asymmetric information and incomplete policies,the "high premium"has become the norm for M&A and restructuring of listed companies in China.Premium events with dozens of times or hundreds of times occur from time to time.Once they fail to meet their performance pledges,The ultimate risk will be borne by investors,and small and medium shareholders frequently suffer losses in the merger and acquisition.Therefore,the research on the relationship between M&A performance of listed companies and the premium rate of mergers and acquisitions is significant for enriching the theoretical achievements of mergers and acquisitions,helping investors to correctly identify investment risks and making scientific investment decisions.This article takes the target company of the listed company,namely the merger and acquisition,in which equity transfer occurs in China's A-share market from 2009 to 2014,and whose control rights transfer,firstly comprehensively applies the event research method and the financial index method to examine the performance of the underlying company's mergers and acquisitions,including short-term performance.According to the cumulative excess return CAR under the event study method,long-term performance is measured by financial indicators,expressed as the industry-adjusted excess return on equity,aROE;then,for the performance of different observation periods,it establishes a premium rate for mergers and acquisitions.Multiple linear regression equations and other control variables were introduced to study the effect of premium rate on M&A performance.The conclusions of this paper are as follows:(1)M&A information has been fully digested before the announcement,and there is little or even a risk of deterioration after the announcement.(2)On average,the M&A event can bring short-term positive excess return to the target company's shareholders,and[-3days,3days]is the time when the stock price reaction is the most intensive;in the long term,the target company usually performs well before the merger and acquisition.Poor,but the performance will gradually rise after the completion of the merger.(3)The M&A premium rate has a significant positive effect on the target company's excess return rate in the short-term stock price,and negative impact on the company's mid-to long-term(M&A year and year 1)performance.At the same time,on the basis of the above conclusions,relevant suggestions for investors and the company are put forward:(1)There will be no significant excess return on the stock after the announcement date.At this time,investors who have plans to buy need to be more vigilant and seriously assess the future growth.At the same time pay attention to guard against the risk of short-term correction.(2)The acquisition company should carefully assess the value of the subject beforehand,and strengthen the ability of management integration afterwards;the target company should pay attention to the risk of stock price fluctuations in the short term,and should improve its own management level in the long term.(3)The supervisory authority should strengthen the control over internal transaction behaviors and issue corresponding policies to standardize the pricing mechanism for mergers and acquisitions activities so as to guide M&A and reorganization activities on a healthy track.There are four main points of innovation in this paper:(1)Different from the existing literature,the choice of equity and asset acquisition events is different.This article only takes the acquisition of shares in several major reorganization types as the main sample,because equity acquisitions often With high premiums,it fits the research topic of this article.(2)There are a large number of academic achievements at home and abroad to observe the long and short term performance of mergers and acquisitions,and there are also scholars who are concerned about the impact of mergers and acquisitions premiums on performance.However,the literature on the subject companies and their simultaneous study of the impact of premiums on their long and short-term stock price risks are very scarce..This paper comprehensively analyzes the relationship between M&A premium rate and shareholder investment risk within a deeper span and higher dimensions.(3)Investors' sentiment has changed since the stock market crash.The introduction of policies and regulations such as the refinancing of new regulations and the reduction of new regulations has also changed the environment for mergers and acquisitions.This paper selects the latest data and is more in line with current needs.(4)The existing literature basically expresses the performance of a company based on the absolute value of a single index or a comprehensive factor or an added value,without taking into account industry factors.Therefore,this paper uses the industry-adjusted ROE,or excess return on equity,to measure long-term performance,making the calculation more comparable.