The Research On Internal Control Quality And M&A Performance

M&A can accelerate the development of enterprises and enhance the competitiveness. In recent years, the quantity and size of M&A around the world is rising. Now our country is also experiencing a height of enterprise M&A. However, M&A activities is full of all sorts of risks, so there are also many failure cases. As an important means of controlling and managing risk, internal control is bound to have important influence on enterprises’ M&A activities.M&A performance has attracted many scholars’ attention. And the internal control problems is also under unprecedented attention since the Enron event. The scholars of different countries respectively use different methods to study M&A performance and internal control problems from multiple angle, but from the current point of view studying the combination of the two is still relatively few. So, can the better internal control quality help enterprises to improve its M & A performance ? In the environment that M & A activities is very active and internal control has attracted increasing attention, the dissertation has some discussion on the relation between them. This is of great theoretical and practical significance.The dissertation has five parts, respectively is the overall introduction, literature review, theory analysis and hypothesis, empirical test and analysis, and conclusion. Firstly Chapter 1 introduces background, significance, methods, contents and innovation points. Then the literature review part respectively carried out a systematic review, carding and evaluation on the related literature and study results of M&A performance evaluation, internal control evaluation, and the combination of the two. The theory analysis and hypothesis part respectively introduces and analyses the related basic theories of M&A and internal control, and uses them as the theoretical support of this study to put forward the research hypothesis. On this basis, in the part of empirical research, the dissertation selects 46 listing corporation acquirers in the A share market of China during 2010-2011 which complete M&A activities as the research sample, using the accounting study method, selecting ROE and EPS of the year and the two years after M&A and subtracting the sameindex of the last year to measure the M&A performance, and selecting DIB internal control index of China public company to measure the internal control quality of those acquirers. Then the empirical study began and found that the internal control quality has significant positive influence on M&A performance, which is that companies with better internal control quality will also have better M&A performance. Finally, based on the research results and problems found during the research, this paper put forward some suggestions and prospects on improving the internal control quality and M&A performance, as well as on the content and direction of future research.