TMT Background Characteristics And Management Synergy Of The Target Firms After M&A

In recent years, the M&A taken by China’s listed companies is increasing, but the success rate is not higher. A major reason is the management synergy cannot be effectively realized in merger integration stage. To some extent, management synergy depends on the rational allocation of human resources. So, the human resource integration, especially the integration of TMT, is very important in the merger integration stage. The research on TMT background characteristics is related to the enterprise performance, growth and R&D investment; the research on management synergy is related to the type of M&A, and so on. However, relevant research on the influence of TMT background characteristics to the management synergy is not adequate.This paper takes335listed companies as the research sample, these companies were acquired from2002to2011, and their control power were transferred. This paper takes the TMT scale, average age, age diversity level, gender diversity level and tenure diversity level as explanatory variables, takes the realization degree of management synergy of target company in the year when M&A happened as explained variable, and multiple linear regression models are constructed. With descriptive statistical analysis, correlation analysis and regression analysis, this paper researches the influence of TMT background characteristics to the realization degree of management synergy of target company after it was acquired, and test the hypothesis. At the same time, this paper takes the M&A type as regulated variable, constructs a regulating effect model, researches the regulatory effect of M&A type between TMT background characteristics and realization degree of management synergy of target company after it was acquired.The empirical study shows that the TMT scale and average age have significant negative correlation relationship with the realization degree of management synergy of target company after it was acquired; TMT gender diversity level has significant positive correlation relationship with the realization degree of management synergy of target company after it was acquired; TMT age diversity level and tenure diversity level have positive correlation relationship with the realization degree of management synergy of target company after it was acquired, but they are not significant. After taking the M&A type into consideration, it is found that TMT background characteristics has a stronger influence on the management synergy of target company after it was acquired in the horizontal and vertical M&A than that in the mixed M&A. So, there is a regulatory effect of M&A type between the TMT background characteristics and management synergy of target company after it was acquired.According to the empirical research conclusion, some suggestions can be given:(1) on the premise of basic TMT size, TMT size can be downscaled properly;(2) Under the certain TMT size, reduce the average age of TMT, and pay more attention to the TMT gender diversity level;(3) under the certain TMT size, increase the proportion of female executives;(4) under the certain TMT size, pay more attention to the TMT tenure diversity level;(5) pay more attention to the capital structure, profitability and TMT shareholding;(6) on the premise of weighing costs and benefits, carefully consider the M&A type.