Research On The Influence Of Managerial Overconfidence On Serial Mergers And Acquisitions And Their Performance

With the economic globalization and the domestic capital market’s constantly developing,enterprises tend to expand rapidly and achieve strategic objectives by the way of M&A.At home,The size of enterprise M&A market continues to expand,the frequency of corporate M&A continues to accelerate,and the interval of enterprise M&A continues to shorten.For enterprises,A single merger is not enough to achieve strategic goals,and continuous M&A have become the norm.There are many studies about M&A,but most of them are based on the assumption of "rational economic man".With the development of psychology,scholars have found that overconfidence is widespread and manifested even more in managers.Scholars have tried to study M&A from the perspective of managers’ behavior,and found that their overconfidence will affect M&A activities,such as having a positive effect on the occurrence of M&A,and promoting the generation of M&A premiums.However,most of them adopt the method of empirical research to verify the relationship between the two,and there are few in-depth analysis and research on individual cases to study the specific impact path.This paper studies the successive M&A activities and M&A performance of HNA Group from the perspective of managerial overconfidence.Firstly,the relevant research theories and research results are sorted out and explained.Secondly,introduces HNA Group and the continuous M&A.Thirdly,it analyzes the influence of managers’ overconfidence on HNA Group’s continuous M&A,including judging the overconfidence psychology of HNA Group’s managers by various methods and analyzing the influence of this psychology on HNA Group’s continuous M&A,including frequency,financing and M&A premiums.Fourthly,discusses how managers’ overconfidence affects the performance of HNA Group’s continuous M&A,including analyzing the impact of managers’ overconfidence on the short-term performance of HNA Group’s continuous M&A,and using the financial indicator method to analyze the impact on long-term performance.Based on above research,draws the conclusion that managers of HNA Group do have overconfidence;managers’ overconfidence affects HNA Group’s M&A frequency,M&A financing methods,and M&A premium;under the influence of managers’ overconfidence,continuous M&A does not Bring positive performance to HNA Group.Finally,puts forward suggestions.This paper can enrich the research field about managers’ overconfidence on the continuous M&A and provide reference for enterprise when Conducting M&A activities,remind people to pay attention to the irrational decision-making behavior caused by overconfidence during M&A,which has certain enlightenment to the M&A and governance of enterprises.