An Empirical Study Of The Impact Of Monetary Policy On Corporate M&A

Mergers and acquisitions are considered to be an important way for companies to achieve susta:inable business and development goals.At present,Western developed countries represented by the United States have experienced several waves of mergers and acquisitions.Although China's M&A market started late,it has developed rapidly in recent years,and M&A has become a hot topic for scholars.As one of the most im portant factors affecting the macro economy,monetary policy inevitably has a major impact on the M&A activities of enterprises.In recent years,the central bank of China has insisted on implementing a stable and neutral monetary policy,which has promoted the bank system to maintain a reasonable and sufficient liquidity,and the money supply has grown steadily,which has objectively created a good environment for the rapid development of the M&A market.This paper explores the impact of monetary policy on corporate mergers and acquisitions,including the two dimensions of monetary policy's impact on the size of M&A and M&A performance,and discusses the two entry points of monetary policy on corporate investment activities and financing activities.The heterogeneity of the effects of different property rights enterprises was also studied.First of all,we combed and summarized the past scholars' research findings of the impact of monetary policy on corporate investment and financing behavior,M&A incentives and M&A performance,and related results of monetary policy and corporate mergers and acquisitions.Then,combined with monetary policy transmission theory,signal transmission theory and credit discrimination theoretical analysis,we present relevant research hypotheses.Finally,a total of 2,317 M&A cases of 1476 listed companies in China were selected from 2010 to 2018,and a multivariate linear regression model was established to empirically test the research hypotheses.We mainly got the following conclusions:First,compared with the tight monetary policy,in the loose monetary policy environment,the scale of mergers and acquisitions of enterprises has increased,but the performance of mergers and acquisitions has declined;through the test of intermediary effects,we have proved that during the period of loose monetary policy Enterprises are more likely to over-invest in,which in turn leads to a decline in the company's future financial performance.Second,in the different financing methods of M&A transactions,equity financing is conducive to improving M&A performance,debt financing is detrimental to M&A performance,and loose monetary policy is conducive to alleviating the negative effect of debt financing on M&A performance.Third,the scale of M&A of non-state-owned enterprises is more sensitive to the adjustment of monetary policy than state-owned enterprises,and the M&A performance of non-state-owned enterprises is more sensitive to the choice of financing methods in different monetary policy environments than state-owned enterprises.Finally,based on the research conclusions,we made some suggestions for the government and the company respectively.