What Kind Of Failure Is The Mother Of Success?

With the development of global economy, the merger and acquisition (hereinafter referred to as M&A) is increasingly sought after by enterprises all over the world both in number and transaction amount presents the overall upward trend, has become the enterprise resource reconfiguration, an important means of implementation of external governance. But the M&A of enterprises often ended in failure, and loss suffered varying degrees of M&A, past research has focused on the analysis of the causes of failure of mergers and acquisitions, few scholars study the role of mergers and acquisitions losses.This paper based on the perspective of behavioral learning theory Shanghai and Shenzhen A-share non-financial listed companies of main board from2003to2012in China. The acquisition data as sample, study failed previous M&A of small degree damage subsequent to the enterprise performance of M&A. This study found that:the enterprise in M&A activity exists behavior study, in which companies suffered losses of M&A in the first acquisition is small (compared to undergo large degree loss), the second time the better the performance of M&A and small loss of M&A can significantly improve performance of the second M&A. At the same time, the control variables of cash payments (Method) and free cash flow (Cash) significantly influence on the performance of the second M&A. First, M&A for the first time after the failure of the enterprise M&A of the second cash payments to complete the merger and acquisition of poor performance compared with other non-cash way; Second, for the first time the merger after the failure of enterprise merger and acquisition of the second holding higher levels of cash when implementing mergers and acquisitions, its performance is easy to slide. In addition, the effects of types, the firm size, the place of the enterprise and the top big shareholder shareholding were not significant.Two further inspection of enterprise, after the test of a first M&A through the small loss of M&A is conducive to the second enhance the regulating effect of M&A performance. This study found that:(1) the performance of enterprises with a small degree of loss in M&A activity is better when the time interval between the first time M&A and the second one is shorter;(2) the embodiment in the learning behavior of the merger and acquisition activity has not significant vector "enhanced", when the first mergers and acquisitions and the second M&A target enterprise in the same industry, namely when two similar mergers and acquisitions, enterprise will through summarizing the experience to study of two similar mergers and acquisitions, companies for the implementation of the same industry mergers and acquisitions of learning to a certain extent, replaced by small loss of mergers and acquisitions through the behavior study, thus failed to check out two times M&A target enterprise consistency adjustment effect.Research conclusion of this paper confirms the enterprise in the process of implementation of M&A should take scientific methods to cope with losses due to withstand the failure of the mergers and acquisitions, compared to undergo large degree loss of mergers and acquisitions, companies should be more timely and effectively to the small degree of mergers and acquisitions of loss to fully reflect and summary, the sooner the reflection and summary on the more conducive to promote enterprise in the next M&A performance improvement. At the same time, the enterprise in the process of implementation of M&A should pay attention to the payment method using a combination of a variety of ways, in order to reduce the excessive M&A premiums due to cash payment, allowing some to develop subsequent M&A performance. In addition, when the enterprise to hold large amounts of cash flow, easy to make mergers&acquisitions blindly, or out of overconfidence and pay higher premium of mergers and acquisitions, as a result, enterprises should reasonably control the levels of free cash flow, and make good use of enterprise free cash flow.