Research On The Influence Of M&A Inquiry Letter On The Economic Consequences Of Listed Companies

Now China has entered a high-quality development stage,and China’s stock exchanges have also carried out major reforms in supervision.Shanghai Stock Exchange and Shenzhen Stock Exchange have successively launched and implemented the through train system of information disclosure,which has transformed the supervision of listed companies by the stock exchange from strict control in advance to due diligence supervision during and after the event.In the regulatory transformation period of China’s trading market,the exchange regulatory inquiry system has gradually become an important regulatory means of Shanghai Stock Exchange and Shenzhen Stock Exchange.At the same time,with the arrival of the critical period of China’s economic transformation and adjustment,M&A reorganization is the preferred way of resource allocation for listed companies.Considering the serious problem of information asymmetry in M&A,the M&A inquiry letter issued by the stock exchange for M&A of listed companies is of great practical significance.This thesis takes all major mergers and acquisitions of listed companies from 2014 to2020 as samples to study.Firstly,based on whether the listed companies have received the inquiry letter of mergers and acquisitions,the research objects are grouped,combined with the theory of information asymmetry and information transmission,and considering the actual situation of the listed companies,Analyze whether the listed company receives the inquiry letter of merger and reorganization in the process of merger and reorganization,and whether it has a significant impact on the success of merger and reorganization;Secondly,it further studies all listed companies that have received the inquiry letter of M&A.combined with the reputation theory and the situation of M&A,it uses the event research method to make an empirical study on the market reaction of the initial disclosure of the inquiry letter of M&A of listed companies.Due to the widespread existence of market failure in the market,government supervision plays a particularly important role in the market,which can not be replaced.Therefore,it is of great significance to analyze the regulatory means of issuing inquiry letters by stock exchanges.Firstly,this thesis uses the multiple regression model for empirical research,and then considers various possible error items,tests the robustness of the results by grouping,and tests the endogeneity of the matching results by PSM propensity score.This thesis finds that: first,the probability of success of major M&A events receiving the inquiry letter of M&A is greater;Second,the level of detail of the inquiry letter of M&A is positively correlated with the success rate of major M&A events;Third,the level of detail of the inquiry letter of M&A is positively correlated with the market reaction on the first announcement day of listed companies;Fourth,after receiving the inquiry letter of M&A,the listed company’s own information transparency will be significantly improved,the disclosure quality will be improved and the information asymmetry will be alleviated.Through the above research conclusions,this thesis puts forward the following suggestions:first,investors should improve their vigilance in the process of investment,not only screen the information in the market,but also continuously improve their professional ability and professional cultivation to avoid unnecessary loss of property;Second,the company should establish a good awareness of self inspection,improve its own internal control ability,improve the quality of internal control,manage the company scientifically and effectively,and improve the awareness of risk prevention.Dare to face up to their own defects,face up to the matters mentioned in the inquiry letter after receiving the supervision inquiry,solve the problems timely and accurately,and make detailed,true,comprehensive and sufficient explanations,and take the initiative to avoid all possible adverse consequences;Third,by analyzing the effect of the inquiry letter,the regulatory authorities can further optimize the specific form and process content of the regulatory inquiry,shorten the time to deal with the problem,improve the regulatory efficiency,and strengthen the follow-up measures and role of the regulatory inquiry.This thesis extends the research on the inquiry letter system from whether the listed company receives the regulatory inquiry to a deeper analysis of the text content of the inquiry letter,which provides a new dimension for the research of the inquiry letter and enriches the research content in the field of economic consequences of M&A.The conclusion of this thesis provides a certain reference for regulators,and provides a good basis for protecting the rights and interests of small and medium-sized investors,promoting the efficiency of self-discipline supervision of China’s stock exchanges and the healthy development of the stock market.