Research On The Influencing Factors Of M&A Payment Methods Of China’s Listed Companies

M&A is universally recognized as an important way for enterprises to adjust strategic development direction and optimize resource allocation,thereby increasing their market share and profit margin.As for M&A payment,the final step the most crucial part of the whole transaction,plays a significant role when it comes to the success and the synergistic effect of the deal since it directly relates to the financing methods,capital costs and the distribution of interests of stakeholders.Since 2013,there has been a booming market for M&A in China.In 2014,the revised documents for listed companies’ M&A activities are the signs that M&A market in China has taken a giant step forward,for which research on keys factors affecting the M&A payment methods of listed companies have much practical value.This dissertation conducts an empirical study on the M&A events of listed companies in China from 2013 to 2017 through group comparison and regression methods to study the influencing factors of M&A payment methods and draws the following conclusions:(1)The level of cash holding of listed company will significantly affect the M&A payment.Specifically,the higher the level of cash holding,the more inclined the company will choose cash payment.(2)The valuation of the listed company will significantly affect the M&A payment.Specifically,the more the valuation level of is higher than the average level of the industry,the more inclined the company will choose stock payment.(3)For companies with high-tech qualification certification,the greater the R&D investment intensity,the more inclined the company will choose stock payment.The main innovation of this dissertation lies in the design of the M&A payment method variable.In the past studies,payment method variable was usually designed as a virtual variable.However,this research uses the proportion of cash payment in the total amount of M&A to represent this variable and converts it into a continuous variable,thus better featuring the characteristics of the hybrid payment method.Secondly,in the empirical section,this dissertation further explores the differences in the influence degree of the above-mentioned M&A affecting factors in different cash holding levels and equity-type enterprises on M&A payment methods.