Research On The Motivation Of Merger And Acquisition: Perspective Of Tunnelings

Mergers and acquisitions in recent years have been becoming the focus of attention in China's capital market.In the process of growing and maturing of the M&A market,there are many questionable motives of enterprise mergers and acquisitions.Based on historical research and the present situation of capital market,this paper analyzes the motives of mergers and acquisitions of listed companies from the perspective of the large shareholder's reduction,and probes into the relationship between the large shareholder reduction after the merger and acquisition events.This paper selects the M&A events of companies listed in 2007-2015,and at the same time collects and selects all the corresponding enterprises ' reduction events after the merger,matching the former data as a sample of the whole article.By establishing the merger premium and the proportion of large shareholder reduction,the paper analyzes the effect of M&A on the reduction of shareholder,thus judging the motives of the reduction of enterprise merger.The results show that the M&A premium is significantly correlated with the reduction of the largest shareholder,and the reduction of the largest shareholder is higher after the M&A event with lower premium.Then through the event research method,the cumulative abnormal return of M&A events is calculated to join the model,which proves that the higher the cumulative abnormal return during the window period,the higher the reduction ratio of major shareholders.At the same time,from the econometric sense of the model,we can conclude that the short-term performance of the merger event,is one of the main influence factor of the merger event to the large shareholder's reduction.Finally,the research is extended to the former three major shareholders to reduce the study,which gets the same results.Finally,this article explains that in the enterprise M&A events,there exists motives for the subsequent reduction of major shareholders,through the impact on the stock market performance,M&A events affect the large shareholder's reduction behavior.Based on this conclusion,further suggestions are given from the angle of supervision and investors.