The Research On Corporate’s Governance Mechanism And The Growth Of Corporate After M&A

Development and growth of is the eternal goal of all corporate in any social system and economic environment. The current consensus is that the academic community:the company’s growth has many advantages compared to internal growth in terms of timeliness and other ways to achieve through acquisitions. According to statistics from a number of advisory bodies, the number of M&A activity and the size of the transaction was the growing business community of the situation, but not as expected the acquisition to enhance the company’s performance, to bring the target company’s growth effect is not obvious. Corporate governance as an important factor affecting the growth of the company, which may greatly affect the positive effects of the acquisition on the company’s growth. Given the corporate governance mechanism is an indirect influence in merger scenario is likely to have an impact on some mechanism through the company’s growth. The agency costs between shareholders and minority shareholders has been recognized as one of the reasons academic growth inhibition company. So the agency cost is likely to be a key factor in the target company after the merger and the impact of governance mechanisms between the growth mechanism. In this study, the theoretical analysis and propose hypotheses in the use of M&A motivation theory, coordination theory, diversification theory, undervalued theory, agency theory with research scholars at home and abroad on the basis of theoretical analysis. And thenBased on2004-2011China M&A events in Shanghai and Shenzhen A-share market of220targets corporate data, explore the impact of corporate governance mechanisms on the target company’s growth from an agent after the acquisition cost perspective, the study found that:(1)after the merger target equity restriction is higher, the higher the company’s growth.(2)after the merger the higher proportion of independent directors of the target company, the higher the company’s growth.(3)After the acquisition of the Target Company executives held holdings, the company’s high growth.(4)After completion of the acquisition, agency costs between shareholders and minority shareholders of the target company plays an intermediary role in the growth and corporate governance mechanisms between.This article is different from previous studies on the static nature of the company’s growth research perspective, focusing on the underlying factors of the company’s growth and acquisition scenarios under the internal mechanism, rich perspective on the company’s growth study of this issue. In addition, the paper confirmed after the completion of the acquisition significantly affect the balance of the equity interest in the Target Company, board independence, executive ownership and other corporate governance mechanisms the company’s growth, and found that the agency costs between shareholders and minority shareholders in corporate governance and intermediary role between the company’s growth and help the acquirer, the target company, regulators better understand the impact of the internal mechanism of the acquisition of the target company’s growth.