| Mergers and acquisitions is an important channel for enterprises to expand operation scale,improve financial performance,allocate resources and realize future development strategy.Successful and efficient M&A plays a pivotal role in the future development of enterprises.The price paid by the acquiring company and the degree of premium are important components of M&A transactions,which play a decisive role in the success and efficiency of M&A transactions.As the basis of corporate governance structure,ownership structure has a great impact on investment decisions such as mergers and acquisitions.Therefore,this paper focuses on the ownership structure of the acquiring company to study its influence on the premium level in M&A activities.In addition,the capital structure of the acquiring firm determines its ability and willingness to pay the premium to some extent.Therefore,this paper further discusses the regulatory effect of leverage ratio of the acquiring firm in the influence of equity structure on M&A premium.Based on relevant theoretical analysis,this paper conducts an empirical study on1080 successful mergers and acquisitions of Chinese A-share listed companies from2012 to 2021.Equity concentration degree,equity balance degree and equity incentive degree were selected as the characteristic variables of the ownership structure of the acquiring company,and multiple linear regression models were constructed to study the influence of ownership concentration degree,ownership balance degree and ownership incentive degree on the M&A premium.Further,the financial leverage ratio of acquiring enterprises is added into regression models to explore the regulatory effect of leverage ratio.Moreover,the mediating effect of internal control quality and free cash flow on the impact of ownership concentration on M&A premium is tested to further explore the specific transmission mechanism of ownership structure on M&A premium.Through empirical research,this paper draws the following conclusions: First,ownership concentration of acquiring firm has a significant negative impact on M&A premium.And there is a significant positive correlation between equity balance degree and equity incentive degree and M&A premium.Second,the increase of the financial leverage ratio of the acquiring firm has a inhibitory effect on the negative impact of the ownership concentration on M&A premium.It also has an inhibitory effect on the positive influence of equity incentive degree on M&A premium.The regulatory effect of equity balance degree on M&A premium is not significant.Third,internal control quality and free cash flow play a partial mediating effect on the influence of ownership concentration on M&A premium.Fourth,compared with non-state-owned enterprises,the shareholding level of major shareholders and managers in state-owned companies have more obvious influence on M&A premium.There are also some differences in the influence of the ownership structure of the acquiring firm on M&A premium under different kinds of M&A transactions.Based on the empirical conclusions,this paper put forward the following four suggestions.First,reasonably allocate ownership structure and appropriately improve ownership concentration.Second,optimize the equity incentive system and the internal governance structure.Third,improve the governance mechanism of creditors to give full play of external governance.Fourth,strengthen the supervision and management of relevant departments on the M&A market.Compared with previous studies,this paper comprehensively measures the ownership structure from multiple perspectives,and includes the leverage ratio of the acquiring firm as a regulatory variable into the research framework of the influence of ownership structure on M&A premium,thus revealing the possible internal relationship between the ownership structure,capital structure and M&A activities of the acquiring party.It provides a new perspective for the research on the influence of ownership structure on M&A premium. |
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