The Impact Of Accounting Conservatism On Corporate M&A Behavior And Performance

With the continuous development of China's economy,more and more enterprises begin to realize the growth of their companies through mergers and acquisitions,the risky enterprise investment activity.Accounting conservatism as an important corporate governance mechanism,its governance role in mergers and acquisitions has always been the focus of researchers.At present,the academic community has conducted a full study on whether accounting conservatism can play a role in enterprise m&a and what role it plays,but the research on how accounting conservatism plays a role in mergers and acquisitions is relatively lacking.This paper selects two a-share listed companies in the pharmaceutical industry with frequent mergers and acquisitions in recent years as research objects,according to behavioral consistency theory and information asymmetry theory,and explores how accounting conservatism affects the m&a performance of enterprises by influencing the decision-making of some key m&a behaviors in the m&a process with the method of double-case comparative analysis.The study found that accounting conservatism plays a role in the governance of information asymmetry in mergers and acquisitions of enterprises.In different stages of mergers and acquisitions,the key m&a behaviors related to the risk of information asymmetry--m&a frequency,m&a target party selection,and m&a payment method,are affected by accounting conservatism.High degree of robustness of enterprise m&a decision is relatively cautious,the frequency of m&a is not high,more likely to choose to achieve the same industry mergers and acquisitions share-based payment way.Since the robust m&a decision reduces the m&a risk and facilitates the later m&a integration of enterprises,the long-term m&a performance of enterprises with a higher degree of conservatism will be more ideal.This research can help enterprises to expand the way to solve the inefficient merger and acquisition decision-making,and also can play a complementary and perfect role in the theoretical research on accounting conservatism and merger and acquisition activities.