Bank-Enterprise Relationship,Financing Constraints And M&A Performance

M&A is an effective way to achieve economic transformation and upgrade and optimize resource allocation.It is also an important means for enterprises to develop rapidly and integrate resources.With the continuous development and expansion of the domestic capital market,the market competition is gradually heating up.Enterprises relying on the accumulation of their own resources to achieve gradual development can no longer meet the needs of the actual needs.In recent years,the wave of large-scale mergers and acquisitions in China has been the performance of enterprises seeking to develop and expand rapidly.M&A is a systematic project that requires a large amount of financial support.The financial resources owned by enterprises are not only a necessary condition for M&A,but also one of its important driving factors.Due to the special system background in our country,some enterprises have serious credit discrimination.In order to avoid the obstacles in formal system,enterprises will establish various social relationship networks with banks and other financial institutions.The establishment of these relationships will reduce the information asymmetry between banks and enterprises,reduce the financing cost of enterprises and ease the financing constraints of enterprises.Therefore,as a kind of social relation capital,bank-enterprise relation can provide convenience and help for the survival and development of enterprises to a certain extent,but whether enterprises can make good use of the credit resources advantages brought by bank-enterprise relationship and promote the improvement of enterprise merger and acquisition performance is a topic worthy of our consideration and discussion.Based on this,this paper takes the M&A events initiated by A-share listed companies in Shenzhen and Shanghai from 2011 to 2015 as research samples,and attempts to integrate bank-enterprise relationship,financing constraints and M&A performance into a unified research framework to conduct research.It further explores the relationship between bank-enterprise relationship and M&A performance,bank-enterprise relationship and financing constraints,financing constraints and M&A performance,and further tests whether financing constraints play a mediating role in the impact of bank-enterprise relationship on M&A performance.The results show that:(1)compared with the companies without bank-enterprise relationship,the companies with bank-enterprise relationship will produce negative M&A performance in M&A activities;(2)compared with companies without bank-enterprise relationship,companies with bank-enterprise relationship can alleviate their financing constraints;(3)compared with companies with low financing constraints,companies with high financing constraints will produce positive M&A performance in M&A activities;(4)the degree of financing constraint plays an intermediary role between bank-enterprise linkage and M&A performance.Based on the conclusions of this paper,the following revelations are proposed: As an alternative mechanism to formal institutions,bank-enterprise relationship,a social relationship capital,has a dual impact on M&A activities.On the one hand,it can provide credit support for M&A activities of enterprises and ease the financing constraints of enterprises,but on the other hand,enterprises may conduct value-based mergers and acquisitions due to the enhancement of external financing capabilities and the weakening of leverage governance effects.In short,enterprises,banks and relevant government departments need to work together to standardize the bank-enterprise relationship,rationally utilize and give full play to the advantages brought about by the bank-enterprise relationship,and at the same time strengthen management to curb its adverse effects.