The Research On The Premiums And Discounts Of Chinese A-Share Listed Companies' M&A

M&A is an important way for companies to expand externally and achieve outreach.The determination of M&A prices is the most complex and critical part of M&A.Many companies must pay high M&A expenses to complete the transaction,while some companies can complete the acquisition at lower costs.This difference in premiums and discounts in M&A has aroused widespread concern in academia and corporate practice.This paper makes an in-depth study of the M&A transaction events that are major asset reorganizations of Chinese A-share listed companies from 2008 to 2017,which constructs linear regression models of M&A premiums and discounts and factors affecting them,and uses event analysis and accounting research method to explores the impact of M&A premiums and discounts and the factors affecting them on the follow-up stock price performance and business performance of the listed companies.This study finds that the positive factors affecting the level of M&A premiums and discounts include the issuance of shares which is one of the form of M&A,the proportion of trading shares of the acquired party,the market method and return method which are two of the final valuation methods,gambling agreement,and the cash payment and share payment which are two of the transaction methods.The reverse factors include related transactions.M&A transactions can enable shareholders to obtain excess returns in the short term and positive gains in the long term,and the higher the level of M&A premiums and discounts,the greater the returns.M&A transactions can also improve the follow-up business performance and profitability of listed companies,and the higher the level of M&A premiums and discounts,the better the improvements are.Each factor that influences the M&A premiums and discounts also has different degrees of influence on the subsequent economic value of listed companies.This paper innovatively links the M&A premiums and discounts,the factors affecting the M&A premiums and discounts,and the follow-up stock price performance and business performance of listed companies,which makes great contributions to the research on the formation mechanism of M&A prices and the subsequent economic value of M&A by enriching the theoretical foundation and empirical research results,and provides important reference for the design of M&A transactions and investors participating in M&A transactions.