The Effect Of Payment Modes On M&A Performance

M&A is an economic means for enterprises to achieve efficient expansion,and a favorable channel for enterprises to seek better integration and better development,which can optimize the economic structure,improve the allocation of resources and raise overall economic efficiency.M&A is highly respected both at home and abroad.Now China's M&A activity shows great vitality and covers almost each industry and M&A events are most frequent in manufacturing enterprises.There are some kinds of payment modes,such as cash,assets,equity,debt and portfolio,which mainly used for horizontal or vertical integration,financial investment,business transformation,backdoor listing,asset restructuring and other aspects.In terms of quantity and amount,mergers and acquisitions have achieved rapid growth.However,there are some problems in the process of M&A activity,such as capital market is not mature,the stock issue is limited,intervention from government,slow development of intermediaries,blindness and single payment modes.Payment is the last step in the completion of mergers and acquisitions,but also one of the most important aspects.Scholars have a wealth of study on M&A performance,and the study of payment modes is one of the key points of it.However,the study on the classification based on the industry life circle is quite little.Based on the comprehensive analysis of literature and results domestic and foreign,theories and methods,we collect the samples which completed mergers and acquisitions in 2012 from WIND database.By analyzing the financial data for 2011 to 2015,constructing the model by factor analysis method,calculating and analyzing performance,testing the hypothesis with multiple regression methods,we get the results of the effect of different payment modes on M&A performance finally.In addition,this paper also takes the theoretical basis of industry life circle into consideration and analyzes the effect on the choice of payment modes.We want to get the best match for the payment mode,industry life circle and the performance of M&A.The article has five parts.The first outlines the background,meaning and value,literature review,research ideas and methods.In the second part,the author elaborates the definition of M&A,M&A performance,the influence of payment modes on performance,the theoretical basis of industry life circle and puts forward two hypotheses.The third chapter describes the design and measurement of M&A performance by factor analysis method.This article selects 10 financial indicators of five capabilities and calculates the performance of each period according to the relevant definition.The forth chapter is the empirical analysis of payment modes and M&A performance,practicing descriptive analysis and regression test from the whole perspective and the perspective of industry classification.The paper draws two conclusions:one of the conclusions is that there is a significant difference between the cash payment mode and the equity payment mode,and the performance of equity is better;the other is that there are some differences in the choice of payment modes and M&A performance when considering industry life circle.The last part is the conclusion and the writer also puts forward some suggestions.