Research On The Relationship Between Product Market Competition, Executive Power And Corporate M&A Performance

Rapid development of our capital market,Mergers and acquisitions(M&A)events especially for the frequent mergers and acquisitions of listed companies,mergers and acquisitions of listed companies to promote the effective allocation of social capital,is beneficial to the rapid development of financial markets and product markets,mergers and acquisitions of listed companies tend to involve large amount of consideration,M&A risk is big,in recent years,the listed company merger and acquisition failures is high,which brings huge harm to the people and the society.With the continuous improvement of the national financial system and securities regulatory system,when a company expands or has a crisis,it will take into account the merger and acquisition behavior.A successful merger and acquisition can make a company expand rapidly and bring a company back from the dead that is on the verge of failure.Therefore,corporate M&A behavior,corporate M&A performance and the influencing factors of corporate M&A performance are the hot and difficult topics for most scholars to study.Senior managers,in this paper,in particular the CEO,that is,the general manager of the company,as the operations director of the company,have a considerable say over the company's development and merger and acquisition decisions.Whether the concentration of executive power will affect the company's merger and acquisition performance,whether it is positive or negative,is worth studying.In addition,in the market economy environment,the external environment also has a certain degree of influence on the company's M&A behavior.When the company is in a market with different degrees of competition,the company's M&A performance will also change to different degrees.How the degree of product market competition affects the company's M&A performance is worth in-depth study.Based on the research results of domestic and foreign scholars on product market competition,executive power and corporate merger and acquisition performance,this paper proposes the hypothesis of the relationship between executive power,product market competition and merger and acquisition performance.In order to verify the hypothesis,1076 M&A cases occurred in Shanghai and Shen Zhen stock markets from 2013 to 2015 were selected as samples according to certain conditions for empirical analysis of relevant data.Descriptive statistical analysis,linear regression analysis and robustness analysis were conducted on relevant indicators through SPSS software.The research conclusion of this paper is: the greater the power of senior executives,the greater the probability that senior executives will push enterprises to carry out irrational M&A,and the worse the M&A performance of enterprises may be.The fiercer the competition in the market where the enterprise is located,the stronger the market competitiveness of the product is,the better the M&A performance may be.Moreover,product market competition,an external factor,can regulate the negative impact of executive power on corporate M&A performance.Based on this,enterprises should pay attention to improve the market competitiveness of products,strengthen the scientific analysis before M&A,improve the internal governance mechanism and M&A approval and control,and improve the performance of M&A.