Research On The Impact Of Executive Turnover On M&A Performance

In recent years,China has set off a wave of mergers and acquisitions.According to data from the Zero2IPO Research Center,it can be found that China's M&A market is extremely active,and the number and amount of M&A show a growing trend,in recent years.M&A is increasingly becoming an important way for enterprises to grow.A large number of scholars have conducted researches on whether and how M&A can bring performance growth to company,but there are relatively few relevant literatures to analyze the impact of M&A performance from the perspective of executives turnover.However,through studying recent M&A cases,it is found that the turnover of executives of target company has become more and more frequent after M&A According to the structural hole theory,executives are at the core of the enterprise.Because of the special position of the executives in the enterprise,it is necessary to research them.Observing the researches of scholars in the past,we can find that scholars paid more attention to the impact of executive turnover on performance in the general situation.However,there are not many related researches in the situation of M&A.Existing research has focused on directly research on the impact of executive turnover on M&A performance,and few external factors have considered why executive turnovers have different effects on M&A performance.There are fewer studies based on China's national conditions and the actual situation of listed companies in China.In addition,due to the different measurement methods used by the variables,different samples and other reasons,the conclusions obtained by the existing literature research are not uniform,and even the opposite conclusions have emerged.In order to further explore the relationship between executive turnoverand M&A performance and its influencing factors,this paper takes the merger and acquisition events of China's Shanghai and Shenzhen A shares listed companies from 2006 to 2014 as the research object.According to the standard,We selected 107 research samples and collected relevant financial data within One year before the merger,the current year,three years after the merger.We use spss20.0 for descriptive statistics,correlation analysis and hierarchical regression analysis.From the perspectives of principal-agent theory,basic resource theory,institutional theory,and stakeholder theory,this paper examines the impact of executive turnover on M&A performance after mergers and acquisitions.We further considering the influence of industry factors,regional factors and regional institutional environment between the company and acquired company.Then explored the moderating effects of merger type and market segmentation.This paper mainly draws the following conclusions:For the target company,the company's performance after the merger is slightly higher than that of the company whose executives have not changed.The executive turnover can positively affect the M&A performance.The type of merger has a regulatory effect on the relationship between executive turnover and M&A performance.Market segmentation has a regulatory effect on the relationship between executive turnover and M&A performance.The greater the degree of market segmentation,the weaker the positive correlation between executive turnover and M&A performance.Finally,according to the research conclusions of this paper,We proposed measures for the integration of executives after the target companies' mergers and acquisitions.