Empirical Research On The Impacts Of Top Management Team Faultlines On The M&A Premium Of The Entrepreneurial Firms

Merger and acquisition is an effective way for enterprises to expand the existing scale of production and operation,which can not only obtain the original market resources of the acquired enterprises,but also obtain the corresponding technology and advanced management experience.Therefore,with the acceleration of economic globalization,a wave of enterprise mergers and acquisitions has been set off in China,and the Premium of enterprise mergers and acquisitions has repeatedly reached a new high,which is particularly prominent in the GEM market.Existing studies have studied the influencing factors of M&A Premium from the perspective of finance,parties involved in M&A and managers,but few have considered the influencing mechanism of the characteristics and attributes of senior management team on M&A Premium.The entrepreneurial firms is the decision maker of enterprise M&A,and is responsible for coordinating resources of all parties to promote the completion of the transaction in the M&A process.The decisionmaking quality of M&A is directly related to the success and efficiency of M&A behavior,so the characteristics and attributes of the entrepreneurial firms are self-evident in the importance of M&A behavior.In this paper,the top management team faultlines is taken as the entry point and the GEM listed companies from 2010 to 2020 as the research samples to discuss the influence of the top management team faultlines on the merger Premium of the entrepreneurial firms,and analyze the moderating effect of internal control quality and redundant resources on the top management team faultlines and the merger Premium of the entrepreneurial firms,as well as the mediating effect of risk taking on the above two.Based on a variety of theories such as upper echelons perspective,this paper investigates the logical relationship between different types of top management team faultlines and the entrepreneurial firms M&A Premium.The theoretical analysis and empirical test results show that:(1)top management team information-based faultlines has a significant inhibition effect on the M&A Premium of the entrepreneurial firms,and top management team bio-demographic faultlines has a significant promotion effect on the M&A Premium of the entrepreneurial firms.(2)The quality of internal control and redundant resources play a significant moderating role in top management team information-based faultlines on the merger Premium of the entrepreneurial firms,that is,the quality of internal control can positively moderate the inhibition effect of the top management team information-based faultlines on the merger Premium of the entrepreneurial firms,and the redundant resources can positively moderate the inhibition effect of the top management team information-based faultlines on the merger Premium of the entrepreneurial firms;The quality of internal control and redundant resources have a significant moderating effect on the M&A Premium of the entrepreneurial firms in top management team bio-demographic faultlines of the entrepreneurial firms,that is,the quality of internal control can reverse regulate the promotion effect of top management team bio-demographic faultlines of the entrepreneurial firms on the M&A Premium of the entrepreneurial firms,and the quality of redundant resources can positively regulate the promotion effect of top management team bio-demographic faultlines of the entrepreneurial firms on the M&A Premium of the entrepreneurial firms.(3)Risk taking plays a significant mediating role in the top management team faultlines on the M&A Premium of the entrepreneurial firms.(4)The combination of two positions and property rights grouping have different effects on the merger Premium of the top management team fault zone and the the entrepreneurial firms enterprise.In order to optimize the internal composition of the senior management team and promote the sustainable development of the enterprise,the corresponding suggestions are put forward from the level of policy and enterprise.