CEO Background Characteristics,Mergers And Acquisitions And Enterprises Performance

In the current situation of global enterprises'cross-border competition in recent years,the development trend of large-scale and diversified enterprises has been inevitable.Regardless of domestic or foreign enterprises,the number of cases in which they expand their business plans by means of mergers and acquisitions(M&A)has increased.Top managers determine the strategic direction of the enterprise.It is important to study the relationship between CEO and M&A,since the CEO is one of the most important members of top managers.Based on the perspective of CEO and upper echelons theory,this paper studies the influence of CEO background characteristics on M&A behavior and M&A performance.The research conclusions have certain guiding significance for CEO's appointment and improvement of the enterprise performance.This paper first reviews and combs related literatures,and makes theoretical analysis about the relationship between CEO background characteristics and M&A behavior and M&A performance,and proposes relevant hypotheses with research value.Secondly,taking the A-shares listed enterprises as the research object,and selecting the acquiring enterprises of M&A in 2012-2014 for empirical analysis.This paper uses the Logistics model to analyze the influence of CEO characteristics on M&A behavior,and to discuss which characteristics of the CEO are more inclined to M&A.This paper uses multiple linear regression models to analyze the influence of CEO characteristics on M&A performance,and to explore enterprise performance of which CEO characteristics is better.This paper uses the principal component factor analysis method to test the robustness and enhance the scientific and credibility of the conclusions.After the theoretical and empirical analysis of the paper,the following basic conclusions can be drawn:First,the background characteristics of the CEO will have an impact on the M&A behavior.The CEOs who are male,'young,highly educated,and short-term are more likely to initiate M&A.Second,the M&A performance shows an inverted U-shaped trend.The short-term performance of the enterprise is increased,and the long-term performance is declining.The performance rises in the year of M&A and the first year after M&A,and declines in the second and third year after M&A,but it is still higher than before.It can be considered that M&A is successful.Thirdly,the background characteristics of the CEO will have an impact on the M&A performance.The performance of CEOs who are young and highly educated is much more better,that is,M&A is successful.Meanwhile,variables such as gender and term are not significant.At the end of the paper,combined with the research conclusions,the corresponding outlook is made,and improvement measures are proposed for the shortcomings.In the future,we will be able to further study and enrich relevant research from the perspectives of the acquiring enterprises,the target enterprise,the type of M&A,and the life cycle of the enterprise.