Research On The Influence Of Payment Method On M&A Performance From The Perpective Of Economic Cycle

Since 2016,the growth rate of China's economy has slowed down due to the impact of China's economic transformation period and the international economic environment.In order to accelerate the upgrading of industrial structure,optimize the allocation of social resources,ensure the smooth operation of China's economy and avoid the company falling into a short-term growth dilemma,China has issued relevant policies to encourage the transformation and expansion of China's enterprises.The growth of the scale of A share listed companies in China can not only safeguard their own interests,but also ensure the stability of the economy and play a role as the pillar of the national economy.There are two main ways to increase the scale of enterprises:one is to expand the scale of enterprises by internal ductility,and to realize the scale of enterprises by M&A;the other is to expand the scale by purchasing fixed assets.According to the investigation of A-share listed companies' M&A in 2019 by PricewaterhouseCoopers,we can see that the growth of M&A in China has not brought about a substantial increase in M&A performance.In view of the external ductility expansion of enterprises,Chinese enterprises not only enjoy preferential tax policies,but also have few key influencing factors,so there are few cases of performance decline after the expansion of enterprises.Based on the above background,it can be found that the key point of the current research on the internal ductility expansion of enterprises is to improve the performance of M&A,and the choice of payment method as the key link of M&A has always affected the performance of M&A.Combined with a large number of reading and analysis of existing literature,this paper summarizes the latest relevant research,and chooses to study the impact of payment method on M&A performance from the perspective of economic cycle..By combing the relevant concepts and theories of economic cycle,M&A,M&A performance,and payment method,combined with the actual situation of China's A-share listed companies,consulting relevant materials,and theoretical analysis from both macro and micro perspectives,how to choose the payment method of M&A in different economic cycles can greatly improve the performance of M&A in China.Since there is no consensus on the measurement of M&A performance in the existing research,this paper starts from the enterprise performance evaluation index system defined in the operational rules for enterprise performance evaluation(Revised),combines the synergy effect theory of M&A,selects 12 performance evaluation indexes from three aspects of operation,management and finance to build the index system,and obtains the performance of M&A events based on factor analysis.Using the latest M&A data of CSMAR's database,this paper selects 1077 M&A events and uses the M&A performance evaluation system to find out the performance of enterprises after M&A.Through regression analysis of M&A data,this paper analyzes the relationship between payment methods and M&a performance in different economic cycles,and draws the following conclusions:1.In different economic cycles,M&A performance is affected by payment methods;2.In the economic contraction period,cash payment can improve M&A performance to a greater extent;3.In the economic expansion period,share based payment can improve M&A performance Improve M&A performance to a greater extent.According to the empirical results,this paper puts forward relevant countermeasures and suggestions for the government and the M&A enterprises,as a reference to improve the performance of the M&A market in China,and promote the construction of a more mature and orderly M&A market.