Executive In-service Consumption?Research On Analyst Coverage And Performance Of Transnational M&A

With the development of economic globalization,there are more and more investment and trade between countries.Since the 17th national congress of the communist party of China(CPC),Chinese listed companies have responded to the CPC's "going out" strategy,further expanding China's international status,and cross-border mergers and acquisitions have become more frequent.Specifically,there are more and more listed companies involved in cross-border mergers and acquisitions.According to Wind information,163 listed companies conducted cross-border mergers and acquisitions in 2017 alone,involving more than 192.395 million yuan.Under the general trend of cross-border m&a,it is necessary to explore how to improve the performance of cross-border m&a of listed companies.There exist "efficiency view" and "agency view" in executive on-the-job consumption.The "efficiency view" holds that the in-service consumption of senior executives can motivate employees and increase corporate performance.However,the"agency view" believes that senior executives' on-the-job consumption seeks personal interests and damages corporate performance.Then,what is the impact of executive on-the-job consumption on the performance of listed companies' cross-border m&a?Is worth discussing.Analysts' attention is a popular external monitoring variable in recent years.On the basis of studying the relationship between executive consumption and cross-border m&a performance,this paper increases the attention of analysts as a moderating variable.Finally,the sample companies were divided into groups to explore the relationship between analyst concern,executive on-the-job consumption and cross-border m&a performance,so as to provide some empirical evidence for listed companies to improve their performance.Based on this,this paper selects Chinese listed companies with cross-border mergers and acquisitions from 2009 to 2015 as research samples,and studies the data of the year before,the year after,and the year after cross-border mergers and acquisitions.The results show that:(1)the on-the-job consumption of senior executives of listed companies has a negative impact on the performance of cross-border m&a,indicating that the on-the-job consumption of senior executives harms the interests of the company.(2)analyst's attention can effectively reduce the negative impact of senior executives' on-the-job consumption on the performance of cross-border mergers and acquisitions,indicating that effective analyst's attention can reduce executives' personal gain and improve corporate performance.(3)under different property rights,analyst's attention has different regulating effects.Compared with state-owned enterprises,analyst's attention has more significant regulating effects on non-state-owned enterprises.This paper provides a new perspective for listed companies to improve the performance of cross-border mergers and acquisitions,and at the same time has certain significance for improving corporate governance.