Research On Influnencing Factors Of Cash And Stock Payment Methods In Listed Companies' Mergers And Acquisitions

With the growth of economic slowly in recent years,China's economy has entered a new period,and companies urgently need to find new growth points of economic.A lot of industries often choose M&A strategy in order to improve the efficiency of resource allocation.Since 2013,there has been a wave of mergers and acquisitions in our country's capital market.The quantity and scale of mergers and acquisitions have exploded.The revision of the "Administrative Measures on Major Asset Restructuring of Listed Companies" in 2019 further stimulates the vitality of capital market and provides an opportunity for the development of mergers and acquisitions.Domestic payment methods of M&A are relatively simple compared to foreign countries,and listed companies' main payment methods of M&A are cash payment and stock payment.From the perspective of the acquirer,this article is supported by basic theories such as control structure theory,financing sequence theory,information asymmetry theory,and Tobin's Q ratio theory,based on explaining of the market situation of M&A,analyzing the characteristics,advantages and disadvantages of cash payment and share payment.Based on the comparison,from the perspective of the acquirer,the article analyses the influencing factors of the cash payment and share payment in the merger and reorganization of listed companies.The article selects the M&A cases as sample data between 2016 and 2019.Considering the difference between cash payment,share payment and mixed payment methods,this article will make a distinction between cash payment share payment and mixed payment.And different empirical methods are used to study their respective influencing factors.Through empirical analysis,we conclude that factors such as the control structure of the acquirer,financial constraints of the acquirer,the valuation level of the stock in acquirer firm,the size of the M&A assets,and the purpose of the acquirer acquisition will affect the choice of cash and share payment methods in the merger and reorganization of listed companies.It is hoped that the research conclusions of this article can provide practical reference for the listed companies to choose the appropriate M&A payment method,and can help enterprises to flexibly choose the appropriate payment method,so as to help domestic corporate realize the optimization of capital structure and benefit from M&A synergy,and ultimately promote the steady and sustainable development of domestic industries.