Reform Strategies Of State-owned Enterprises, Large Shareholders Constraints, Resource Constraints And M& A Performance

According to the typical facts that acquisitions failed to create value for the acquirer shareholders, scholars of domestic and abroad proposed many theories which including agency theory, free cash flow theory, hubris theory, system theory and so on. However, when examining the explanatory power of those theories, domestic scholars have not reached a consensus conclusion.There existed state-owned enterprises and private enterprises—two different kinds enterprises in China. State-owned and private enterprises are significant different in ownership structure, access to resources, policy support and so on many aspects, which constituting the basis of those theories explanatory power. Distinguishing state-owned enterprises and private enterprises samples and testing the explanatory power of those theories in the two samples are meaningful.According to the empirical test of the two samples, we find that those theories do have different explanatory power in the two samples. Enterprise nature is the adjustment factors of those theories explanatory power, which is the first discover of this paper.On the basis of the first discover, we further explore the relationships of those theories. We think that though those theories have different explanatory angles, the explanation object is the same—m & a drivers.According to the explanation perspective, agency theory, free cash flow theory and system theory emphasize the environmental factors which influence the executives'merger decision-making and hubris theory stresses the point that Executives behavioral characteristics could influence merger decision.Skinner reinforcement theory points that exterior environment can figure individual behavior characters and then affect the individual behavior. As the essence of reinforcement,we reckon that the agency theory, free cash flow theory and system theory via make clear the exterior environment which affect the managers'behavior characters which is the stressing point of the hubris theory,and then explain mergers. The hubris theory is the intermediary factor of the other three theories.On the basis of the first discover, we checkout the above assumptions, using OLS regression and Logit regression. Our empirical result supports the inference. Hubris theory is the mediating factor of explaining the merger activity of agency theory, free cash flow theory and system theory, which is the second discover of this paper.