The Research On The Influence Of Mixed Payment On M&A Performance

Payment methods have a direct impact on M&A performance.After the split share structure reform,with the support of a series of national policies and regula tions,the application of cash and stock hybrid payment(hereinafter referred to as “mixed payment”)in the M&A market has gradually increased.Studying mixed payments is of practical significance.However,subject to sample restrictions,domestic literatures have focused on single cash payments and single stock payments(hereinafter referred to as “single payments”).Only a few have brief description of the M&A performance at the time of mixed payment.There are little literatures on the impact of mixed payments on M&A performance.Therefore,how mixed payment will affect the short-term M&A performance of M&A is a problem that needs to be studied in relation to a single payment.This paper introduces bargain theory,analyzes the decision-making process of M&A payment methods,and links the decision-making behavior of payment methods with economic consequences from the perspective of external signal transmission,and analyzes how mixed payment affects the short-term market performance of the acquirer compared with single payment;From the perspective of internal company management and governance,this paper analyzes how hybrid payments affect the long-term business performance of mergers and acquisitions compared with single payments.Based on the major restructuring events of A-share listed companies in 2011-2017,this paper uses event research method and accounting research method to construct the measurement indicators of short-term and long-term M&A performance.The study found that,compared with single cash payment,mixed payment avoids transmitting negative signals to investors with excessive risk of mergers and acquisitions,and improve short-term market performance;Compared with single stock payment,mixed payment avoids the negative signal that the acquirer's financial ability is insufficient or the value of the underlying asset is low,and the short-term market performance is improved.Further research found that in the re lated mergers and acquisitions,there is no significant difference in the short-term market performance of mixed payment and single payment.In non-associated mergers and acquisitions,mixed payments increase the performance of short-term market performance to a greater extent.In addition,compared to single cash payment,mixed payment reduces the operating risk of the acquirer and improves corporate governance,and the long-term business performance is higher;However,there is no significant difference in long-term business performance between mixed payments and single stock payments.According to the research conclusions,relevant suggestions are proposed from the company level and the government level respectively,which has certain reference significance for the decision-making of M&A payment methods and the improvement of M&A efficiency.