The Impact Of Refinancing Policy Adjustments On Corporate M&A Payment Methods

On February 17,2017,the China Securities Regulatory Commission issued a new refinancing policy,the purpose of which is to regulate and guide the rational financing of listed companies,determine a reasonable financing scale,improve the efficiency of the use of raised funds,and restrict the traditional financing methods of domestic listed companies.Under the influence of the refinancing policy,China's M&A market has undergone tremendous changes.Among them,the choice of different M&A payment methods will have a profound impact on the capital structure of the enterprise,the integration of the latter period of the merger and acquisition and the future development of the enterprise.M&A financing greatly affects the M&A strategy and success of the company.The impact of this refinancing policy adjustment on M&A payment methods will become an important issue worthy of attention.First,this thesis reviews the influencing factors of domestic and foreign M&A payment methods,and sorts out several influencing factors according to the research context of internal and external factors.Then introduced the specific changes of the refinancing new deal in 2017 and the changes brought to the refinancing market and M&A market.From the theoretical point of view,the impact of refinancing policy adjustment on M&A payment methods is analyzed.Finally,the DID model was used for empirical analysis.The companies that had mergers and acquisitions from 2015 to 2019 and did not constitute a major asset restructuring were taken as the research sample.Among them,the merger and acquisition financing method was a directional increase in the experimental group,and the others were the control group;February 17,2017 the time for the introduction of the refinancing new policy is the basis for dividing the time dummy variables.The grouping variables of the refinancing method,the multiplication of the time dummy variables and other control variables are used to test the impact of changes in the refinancing policy on the M&A payment method.At the same time,the method of univariate analysis is used to examine the impact of relative transaction size and capital structure on M&A payment methods in the context of policy adjustment.The research results show that after the refinancing policy adjustment,the equity payment level of corporate mergers and acquisitions has dropped significantly,and this reverse relationship is more obvious in companies with relatively large transaction scales and companies with a high proportion of debt in the capital structure.The refinancing policy adjustment has inhibited companies from choosing equity payment methods,and when the relative transaction size is large and the debt ratio is high,this suppression effect is more significant.From an empirical perspective,this thesis selects the latest M&A data in China to explore the impact of the refinancing new deal on the choice of M&A payment methods.The research conclusions provide empirical evidence for the implementation effect of the refinancing new deal and provide a theoretical basis practice verification.