Research On The Influence Of Internal Control On The Performance Of Listed Companies' Mergers And Acquisitions

In the new era of accelerating marketization,M&A has become an important means for companies to seek strategic expansion and expand their competitive advantage.Especially with the help of “Internet +”,Big Data and AI,domestic capital has become particularly active.Internal control,as an important way for enterprises to optimize the internal environment and strengthen internal management,is inextricably linked to the strategy formulation,risk identification,process control and even the improvement of M&A performance of M&A activities.Therefore,based on the impact of internal control on M&A performance,this paper further analyzes the impact of internal control on M&A performance from the perspective of enterprise heterogeneity(Industry category and property rights)and event heterogeneity(M&A type and transaction size).While verifying the conclusions of existing literatures,it enriches the research content of internal control on M&A performance and broadens the research perspective.This paper selects 1127 M&A transaction events announced by A-share listed companies in 2012-2015 as a research sample for empirical analysis.The M&A performance of the explained variable is divided into short-term M&A performance and long-term M&A performance,and they are measured by the cumulative abnormal return rate and the growth rate of economic value added three years after the M&A event.The explanatory variables are measured by Dib listed company internal control index,and use free cash flow,firm size,debt level,firm growth and return on assets as control variables,regression analysis based on corporate heterogeneity(industry category and property nature)and event heterogeneity(M&A type and transaction size).The findings are as follows: Under the same conditions(1)The internal control quality of the company is significantly positively correlated with the M&A performance;(2)The impact of Internal control quality on M&A performance underindustry heterogeneity varies in the short and long term.The internal control quality of non-manufacturing enterprises has a stronger impact on short-term M&A performance than that of manufacturing enterprises,but manufacturing M&A enterprises are more significant than non-manufacturing in terms of the impact of internal control quality on long-term M&A performance;(3)Compared with state-owned enterprises,the impact of non-state-owned enterprise internal control quality on M&A performance is more significant;(4)Compared with unrelated mergers and acquisitions(mixed mergers and acquisitions),the impact of internal control quality on related mergers and acquisitions' s(horizontal mergers and vertical mergers and acquisitions)performance is more significant;(5)The size of the transaction can positively adjust the impact of internal control quality on M&A performance.