Research On The Influence Of Target Capital Structure Of Private Enterprises On The Choice Of Merger And Acquisition Financing

As China's economic development enters the "new normal",companies are facing increased pressure on asset structure adjustment and product optimization and upgrading.Against this background,merger and acquisition and restructuring,with its advantages of rapidly reducing excess capacity and improving resource utilization efficiency,are playing an increasingly important role in changing the way of corporate capital structure.The success of the merger and acquisition financing determines the success of the merger and acquisition transaction.Therefore,the financing efficiency and the arrangement of the financing structure have become important issues considered by the merger and acquisition sponsor(main merger).The company's financing behavior is constrained by its internal operating conditions and external financing environment,as well as by the corporate capital structure.Is there a target capital status for private enterprises on A shares? Does the enterprise adjust to the target structure? Will the existence of the target capital structure affect the company's merger and acquisition financing choices? Is this effect positive or negative? This article collates and collects the relevant data of some private enterprises in A shares from 2010 to 2018 for empirical analysis,and on the basis of drawing on relevant theoretical analysis,tries to give answers to the above questions.In the merger and acquisition motivation theory theory and dynamic adjustment theory,this article chooses to use the choice of corporate merger and acquisition financing as the interpreted variable,with "enterprise size","enterprise profitability","enterprise solvency","enterprise growth ability","enterprise operation 13 major measures were selected for the ten main measures to measure the level of business management,including "capability","corporate cash flow status","corporate surplus retention status","corporate asset tangibility","corporate income tax burden",and "corporate control right" Variables,using the 229 stocks and bond financing events in merger and acquisition transaction financing options initiated by private companies on A shares between 2010 and 2018 as data,using OLS linear regression analysis method and logit regression analysis method as the method to construct the target capital structure estimate The three models of the model,the dynamic adjustment model of the capital structure and the target capital structure influence merger and acquisition financing selection model are empirically analyzed,and the following conclusions are drawn:(1)A private company on the A share has capital structure adjustment behavior,and will move at a rate of 0.3928 target capital structure adjustment movement;(2)The existence of target capital structure will be obvious Influencing private enterprise merger and acquisition financing choices,when the actual capital structure is higher than the target capital structure value(?),companies are more inclined to choose to issue stocks and use equity for financing in merger and acquisition financing options;(3)The scale of the enterprise,the growth ability of the enterprise,the level of the enterprise's cash flow,the solvency of the enterprise have a negative correlation with the equity financing selection in the merger and acquisition transaction,and the corporate profitability and shareholder results and control have the equity financing in the merger and acquisition transaction.Positive relationship.In addition,based on the stock market environment,the sample heterogeneity test of the whole sample shows that when the stock market performance is low,under leveraged enterprises tend to bond financing in the choice of merger and acquisition financing mode,and over leveraged enterprises must not choose to issue stock financing even when the stock market is low.When the stock market is high,A-share private enterprises are more likely to choose to issue Equity financing.Finally,taking the financial expense rate as an intermediary variable,we measure the impact of the target capital structure on the choice of merger and acquisition financing mode.We find that the financial expense rate of the over leveraged enterprises is on the high side,and the high financial expense rate leads to the increase of bankruptcy risk,which makes the enterprises choose to develop stock financing in merger and acquisition financing.The possible research contributions of this article are:(1)From the research perspective,we always focus on private listed companies,and from the perspective of private enterprises,provide practical guidance and suggestions for private enterprise merger and acquisition financing.As an important economic entity,private enterprises are active in the merger and acquisition market,but the existing literature mainly focuses on the perspective of state-owned enterprises,or discusses various types of enterprises.There are almost no important results that have always focused on the research of private enterprise merger and acquisition financing options.To a certain extent,it can provide guidance for private enterprise merger and acquisition financing choices;(2)Expand the research on the influencing factors of merger and acquisition financing choices.Existing research on the influencing factors of merger and acquisition financing choices is mainly based on traditional financial indicators.In this paper,the target capital structure factor is introduced as the core variable.Compared with traditional financial indicators,for companies with merger and acquisition intentions,external financing choices constitute the state of corporate capital structure.Changes,and the state of the company 's capital structure after the completion of the merger and acquisition has an important impact on the daily operation and production of the enterprise.Therefore,the existence of the target capital structure of the enterprise before the launch of the merger and acquisition activity has an important impact on the choice of corporate merger and acquisition financing.This paper introduces the target capital structure as the influencing factor of merger and acquisition financing choices,and expands the influencing factors of merger and acquisition financing choices in theoretical research.