The Research On The Impact Of Performance Compensation Commitment Of Merger And Acquisition On Shareholder Wealth Of The Acquirer

In recent years,with the rapid development of China’s economy and the intensification of enterprise transformation and upgrading,China’s domestic listed enterprises have ushered in a wave of MERGER and reorganization transactions.In order to alleviate the valuation and pricing problems of the underlying assets caused by information asymmetry in m&a transactions,the m&a performance compensation commitment clause comes into being.However,there are different opinions about the effectiveness of the compensation commitment clause in the existing literature.One view is that the clause can significantly increase the wealth of the shareholders of the master merger by enhancing the synergistic effect of the merger.However,another point of view is that the provision will significantly reduce the asset value of the shareholders of the master merger because of the increase of the merger premium effect.At the same time,the industry on the provision of the setting is also controversial.In view of the existing literature,this paper empirically examines the specific impact of m&a performance compensation commitment on shareholder wealth and its transmission mechanism.In this regard,this paper adopts the empirical research method of constructing multiple regression model and takes m&a and reorganization transactions of domestically listed enterprises in the main board market from 2011 to2018 as the research sample.First of all,the research samples with m&a performance compensation commitment were set as the experimental group,and the research samples without M&A performance compensation commitment were set as the control group.Multiple regression method was used to verify the specific impact of M&A performance compensation commitment on shareholder wealth of owner-merging enterprises.Secondly,this paper uses the mediation effect analysis method to reveal the transmission mechanism behind the specific impact of m&a performance compensation commitment on shareholder wealth.Finally,the study samples with related party transactions were set as the experimental group and those without related party transactions as the control group,further testing the robustness of the main regression results.This paper shows that the signing of the performance compensation commitment can significantly improve the wealth of the shareholders of the merger enterprise,but the two-way performance compensation commitment can not significantly improve the wealth of the shareholders of the merger enterprise;At the same time,the transmission path test shows that the main reason behind the improvement of the shareholder wealth of the merger is the m&a synergistic effect,and there is a transmission path of "m&a performance compensation commitment--M&A synergistic effect--the increase of shareholder wealth of the merger".This paper puts forward that only by perfecting the compensation commitment clause of m&a performance,adopting various evaluation methods of the underlying assets and enhancing the supervision requirements of the regulatory agencies can the win-win situation be realized.The research results of this paper can provide some reference for solving the disputes of domestic and foreign scholars on the application of m&a performance compensation commitment clause and the reasonable application of this clause by Domestic enterprises in China.