Research On The Merger Effect Of Chinese"Listed Company +PE"Mode On The Financial Constraints

In recent years,with the slowdown of China's economic growth,companies have been unable to meet their strategic development needs by relying on the growth of internal sources of capital.In order to achieve sustainable development,companies began to gradually shift to extensional expansion.Merger and reorganization provides companies with an effective channel for industrial expansion and realizes a diversified development strategy.At the same time,companies can obtain the scale effect and synergy effect brought by the expansion of production and operation resources,and improve the management level and core competitiveness.The Chinese multi-tiered capital market that has been vigorously promoted has provided companies with a broad platform for development.However,the asymmetry of information has limited companies' funding capability.In 2011,the launch of the "Public Company + PE" model pioneered by Dakang Animal Husbandry and the PE agency Silicon Valley Paradise has become a major hot spot in the capital market.The number of cooperation and funding scales of this model has continued to grow rapidly.This article manually collected more than 1,500 listed company announcements,collected and compiled 573 "Listed company + PE" merger and acquisition fund cases announced during the period from January 2012 to January2018,and concluded that listed companies and PE agencies jointly conducted the practical operation of M&A investment and sums up the organizational structure and financing model for establishing the M&A fund in this mode.Listed companies can take advantage of the capital and information of PE institutions,flexibly design trading programs,and independently choose the proportion of capital they invest,mergers and acquisitions that are more in line with their strategic objectives.This paper screens out 27 cases in which M&A funds have completed the target M&As.Through the SA index measurement of changes in the level of listed company's financing constraints,it is found that the “Publiccompany+PE” model M&A has a certain mitigation effect on corporate financing constraints.This paper selects the mergers and acquisitions fund initiated by Tongyuan Petroleum and Dongzheng Finance as a case study object,and analyzes the changes in the financing constraints of listed companies through qualitative and quantitative methods.The research results show that this mode of merger and acquisition solves the problem of corporate financing and payment,reduces information asymmetry,eases the financing constraints of the company,and increases the mitigation effect after the M&A target is injected into the company,and the early locking of the target brings synergy to the company.The increase in the company's revenue at the same time expands the scale of the company,and enhances corporate value.This article proposes to the listed company,PE and government according to the research conclusion that the government supervisory organization should strengthen information disclosure,improve follow-up supervision,curb speculation behavior,and prevent insider trading.In the cooperation between listed companies and PEs,they should also optimize cooperative relations,open up more organizational structures,financing methods,and trading programs,and find balance points to achieve strategic goals and coordination of interests.At the same time,the government should work hard to build a financing platform for M&A funds,encourage financing tools such as M&A loans,and gradually form a financial cycle in which M&A operations can be conducted among a variety of participants.As the academic research on the "Listed company + PE" model is on the rise,this paper collects and summarizes the market data and conducts a detailed induction and analysis of this model,which enriches the M&A and financing constraints theory and case studies of the "Listed company + PE" model.But on the one hand,due to the short development time of the model,almost no listed company has experienced a complete cycle.This paper has some limitations when it analyzes the long-term financing constraints of the model.On the other hand,there is no universal conclusion as to the measurement method of financing constraints.Therefore,there may be deviations in the analysis results and it is necessary to continue observation and study.