Financial Development,Financing Constraints And The Efficiency Of Enterprise M&A

In recent years,economic development has entered a new normal,and the real economy is at an important point in the reform of state-owned enterprises,capacity removal and supply-side reform.Mergers and acquisitions have become an important organizational tool to leverage the market.With the deepening of the financial market and the enterprise rights trading market,the state expands the financial lending business and the promotion of enterprise financing support projects,and constantly expands its business.M&A is an important way for enterprises to expand and develop.When enterprises seek high-quality expansion resources,they acquire upstream and downstream enterprises to achieve vertical integration and gain monopoly status by horizontal M&A.Mergers and acquisitions(M&A)synergy is the goal of M&A,and it is also an important way to achieve external expansion and improve the level of profits.The research on M&A performance can be divided into event study method and financial index study method.In the text,the main component analysis method is used to construct M&A performance indicators to better reflect the changes of business performance,and empirical research is conducted on the influencing factors of M&A performance.Financing constraints are inevitable problems in M&A.Different from the general corporate investment events,M&A activities generally require a short time to pay a large amount of funds at one time.According to the financing constraints faced by enterprises,internal financing or external financing is chosen,which involves M&A financing.The financing constraints faced by mergers and acquisitions will affect the performance of mergers and acquisitions,but there is no consensus on the research of financing constraints and mergers and acquisitions performance in academic circles.At present,the empirical analysis of M&A performance focuses more on the scale of M&A or the payment method of M&A,less on the impact of financing constraints on M&A performance,while corporate financing constraints are a common problem.This paper aims to explore the relationship between M&A performance and financing constraints.And to explore the regulatory role of financial development level on the relationship between M&A performance and financing constraints,these issues need more precise empirical evidence to prove and explain.In this paper,we use CSMAR database from 2010 to 2014 to measure the performance of mergers and acquisitions by principal component analysis,and use logistic model to get the financing constraints index LFC.Using multiple regression analysis,this paper studies the relationship between financial development,financing constraints and M&A performance.The results show that the level of financial development has a significant impact on the correlation coefficient between M&A performance and financing constraints.Financing constraints reduce the performance of M&A.To a certain extent,the level of financial development alleviates the pressure of enterprise financing.Financial development can promote enterprises to choose more diversified financing methods in M&A,and the relationship between financial development,financing constraints and efficiency of M&A.There is a significant correlation.