The Impact Of Analyst Prediction On Corporate M & A Performance

With the continuous development of China's economic form,companies opened more mergers and acquisitions,the trend of increasing M & A activity has increased year by year.In M & A activities,the asymmetry of information generated by agency issues has become the key to affecting M & A performance.As a medium to break the information asymmetry barrier between the company,market and investors,Through research on the relationship between analysts and corporate M & A performance,It can reveal the mechanism of external information quantity and information quality,alleviate the poor performance of China's corporate M & A performance,and provide a reference for improving corporate M & A performance from a third-part perspective.Based on the previous literature research,this paper combines the related theories of information asymmetry,principal-agent,efficient market hypothesis,and behavioral finance to build a theoretical analysis framework for the forecast of analysts and the performance of M & A enterprises.Select analyst forecast behavior and analyst forecast quality as the indicators for analyst forecast,Taking China's A-share listed companies from 2004 to 2017 as a sample,the OLS model is used to predict analysts and long-term and short-term mergers and acquisitions of M & A companies.Based on the sound conclusion of the verification,Verify the impact of analyst forecasts on M & A performance under different property rights.The study found that: In terms of short-term M & A performance,there is a positive correlation between analysts 'predictive behavior and short-term M & A performance,while analysts' prediction quality is negatively correlated with M & A performance.That is,the more analysts 'predictive behavior,the more accurate the analyst 's prediction,the higher the short-term M & A performance of the enterprise;both the analyst 's predicted behavior and the analyst 's predicted quality are negatively correlated in the long-term M & A performance,that is,the more analysts 'predicted behavior,the lower the enterprise 's long-term M & A performance.The higher the quality of the division 's prediction,the better the long-term M & A performance of the company.Under different property rights,for short-term M & A performance,analysts 'predictive behavior is positively related to state-owned property rights companies,but not to non-state-owned property rights companies.The results of the analysts predictions quality in state-owned and non-state-owned has the same for the fullsample regression,but the state-owned enterprises are more sensitive to the analysts response;In the long-term M & A performance,the correlation between the analyst prediction behavior and the analyst prediction quality for state-owned property rights companies and non-state-owned property rights companies is consistent with the full sample regression results.However,non-state-owned property rights companies are not sensitive to analysts predictions.Generally,analysts prediction behavior and forecast quality have a greater impact on the long-term and short-term merger performance of state-owned property rights companies.Finally,based on the research conclusions,this paper puts forward relevant countermeasures and suggestions for the problems,with a view to providing decision-making reference for improving the efficiency of mergers and acquisitions in my country's capital market.The paper has 5 figures,19 tables and 105 references.