Research On The Influence Of Financial Slack On Enterprise Mergers And Acquisitions Decision

As market behaviors,inter-enterprise mergers and acquisitions are always happening.In the impact of the M&A wave,corporate M&A decisions have become an important content of business management.M&A is an important means for enterprises to expand production capacity and increase market share,and also an important way for enterprises to allocate resources and allow full play to redundant resources.In the past,when studying financial redundancy,scholars often paid attention to the role of financial redundancy,the relationship between financial slack and enterprise performance,and the relationship between financial slack and enterprise innovation,rather than the relationship between financial slack and mergers and acquisitions.Therefore,the enterprise's M&A decision is taken as the research object to deeply study the impact of financial slack on the M&A decision.Firstly,the research framework of the thesis is constructed by reviewing and summarizing the literatures related to the research content of the thesis at home and abroad.Then the related concepts and basic theories of the thesis are explained.The financial slack is divided into two aspects of cash slack and debt redundancy,so its impact on the M&A decision is studied.The M&A decision defined by the thesis mainly includes two aspects.The first is whether the company intends to make decisions on mergers and acquisitions,and the second is the decision of the M&A payment method of the enterprise.The analysis of the above two situations is used to comprehensively study the M&A decision of the enterprise.Then four research hypotheses are proposed.Finally,four sets of research models are constructed to verify the above hypotheses.In the process of research,the relevant index information of listed companies in Shanghai and Shenzhen stocks from 2016 to 2017 is taken as a sample,and the empirical analysis is conducted using SPSS software according to the constructed research model.The target method is used to measure financial redundancy,and logistic regression analysis is used to study the impact of financial redundancy,cash slack and debt slack on corporate M&A,and the impact of financial slack on corporate M&A payment methods.Research shows that mergers and acquisitions can be positively promoted by cash redundancy,debt slack and financial redundancy;after studying the impact of financial slack on corporate mergers and acquisitions,this paper further studies the impact of financial slack on corporate M&A payment methods,which concludes that companies with financial slack tend to carry out mergers and acquisitions by cash payment.