A Study On The Preference Of Listed Companies' M&A Financing Under The Complete Circulation Situation

Merger and Acquisition (M&A) which is an effective approach to adjust industrial structure and expand corporation running scale rapidly has been developing for more than 100 years in western, there are gone through five rounds of the wave of M&A, in the sixth wave of M&A among quietly silent way. However, split shares structure existing in China capital market for a long time, hindered the development of M&A markets in china in a way. The problem of Equity Ownership Reform has been solved, and the realization of Complete Circulation makes the cost and the barrier of M&A in the secondary market largely reduces, and improves the number of M&A greatly. The enterprise value in M&A of listed companies is shown really in the price field of secondary markets. We can foresee that there will be a great change in the width, depth, motivation, method, method of payment and financing method and so on of M&A after the complete circulation in the capital market.Firstly, we analyses the preference of M&A financing method in the complete circulation market. Split shares reform hasn't settled the preference of equity financing of listed companies ultimately. With the Descriptive Analysis, we found that the preference of listed companies in M&A ranking like this: self-possessed fund, loans from bank, issuing stocks, loans with self-possessed fund, and others.We pay our attention to the analysis on the performance of listed companies's' M&A with the background of their financing preferences. We finally got the conclusion that the performance promotes in a short-term but decreases in a long-term. Currently speaking, with issuing stocks, the performance has promoted; with loans from bank, the performance got weak; with self-possessed fund and the conjunction of loans and self-possessed fund, the performance promotes in a short-term but fall in a long-run; with others, the performance has fallen in a short-term but promoted in a long-run.Since different M&A financing preference has different performance, and generally speaking, the preferences of financing method of listed companies's M&A are effected by many factors. With principal components analysis (PCA) and regression analysis of SPSS 13.0, we found that M&A financing method has a negative relation with profitability, tax effect and shareholding structure.; but has a positive relation with capital structure.