The Influence Of Monetary Policy On The Performance Of Leveraged Mergers And Acquisitions

Since the opening of capital market in China,various forms of capital transactions are gradually rising.In this context,companies want to expand,in addition to their own unique advantages,such as the industry unicorn,but also through the acquisition of other companies,which is currently relatively fast.Although the development of chinese capital market is relatively late,its development rate is amazing in the world.At the same time,the change of mergers and acquisitions scale in China is also unprecedented,the number of mergers and acquisitions reached 11173 in 2018,up 11.79% from the same period last year,and the total amount of mergers and acquisitions transactions reached 2.48192497 trillion yuan.For listed enterprises preparing to carry out mergers and acquisitions in China,if they want to succeed in mergers and acquisitions,get the corresponding performance through mergers and acquisitions,and achieve the goal of expanding the size of the company,it is necessary to obtain sufficient mergers and acquisitions funds,not only that,but also to have a very clear understanding of the macro policy of the country,especially the monetary policy.Because this is clearly related to the financing costs of the company and other related issues.The adequacy of funds and the minimizing of cost are helpful for Chinese companies to make the best financing decisions.Although the previous studies have a deep view on the impact of corporate financing leverage on mergers and acquisitions performance,there are few studies on the impact of monetary policy on mergers and acquisitions performance.Therefore,this aspect still needs to be studied.However,under the background that the theoretical research of monetary policy on mergers and acquisitions performance is not yet mature,this paper uses financing leverage as the intermediate goal to combine the relationship between monetary policy and financing leverage and the relationship between financing leverage and mergers and acquisitions performance,and studies the relationship between monetary policy and enterprise leveraged mergers and acquisitions performance.The empirical part of this paper is as follows: first,selecting the mergers and acquisitions data between 2006 and 2015 in chinese mergers and acquisitions market,then screening to get the data needed in this paper,then the static panel model is used for empirical analysis,and the robustness test of the way replaced by explanatory variables is also carried out,and it is found that it is robust.The empirical results show that:(1)the high financing leverage of enterprises has a significant negative effect on the performance of medium-term mergers and acquisitions;(2)the monetary policy tends to tighten,which significantly strengthens the negative correlation between corporate financing leverage and medium-term mergers and acquisitions performance;(3)the direct impact of monetary policy on medium-term mergers and acquisitions performance is not significant.Then,according to the empirical results and correlation analysis of this paper,some relevant suggestions are put forward.