The Empirical Research On The Affecting Factors And Economic Consequences Of The Severity Of Comment Letters On Mergers And Acquisitions

Since the implementation of the information disclosure through train system,the comment system has gradually become one of the most important supervision methods for Shanghai and Shenzhen stock exchange.As China's economy enters the critical stage of transformation and adjustment,mergers and acquisitions,which have serious internal and external information asymmetry,is the main way for companies to allocate resources.Therefore,it is of great practical significance to carry out supervision on M&A.In view of this,based on the information asymmetry theory,principal-agent theory and reputation mechanism theory,this paper selects the major asset restructuring events of A-share listed companies in Shenzhen and Shanghai from December 2014 to December 2018 as the research sample to study the affecting factors and economic consequences of the severity of the comment letters on M&AThis paper finds that the transaction characteristics of M&A and the level of corporate governance have a significant impact on the severity of comment letters on M&A.Specifically,among companies that have received comment letters on M&A,When cash payment is used for M&A,the severity of comment letters is lower;When M&A is evaluated by the income method and is a diversified merger and acquisition,the severity of comment letters is higher;the lower the level of corporate governance,the company's media attention and the proportion of institutional investors,the higher the severity of comment letters.This paper also studies the relationship between the severity of comment letters and the success rate of M&A.It finds that the higher the severity of comment letters received by the company,the lower the success rate of M&A;the more times the company delays replying to the stock exchange,the stronger the negative correlation between the severity of comment letters and the success rate of M&A;the more detailed the company replies,the weaker the negative correlation between the severity of comment letters and the success rate of M&A.In addition,the study also finds that the severity of comment letters on M&A will affect the company's future market performance,that is,the higher the severity of comment letters,the lower the company's future market performance This paper provides a new perspective for the study of stock exchange comment letters and offers theoretical support for the improvement of the comment letter system in China.