Research On The Influence Of Corporate Governance Act On The Performance Of M&A

With our country market development and increasingly fierceinternational competition, M&A has become the main way for enterprises toexpand the strength. Facing the situation of the international economicdownturn, China’s coal industry overcapacity, more and more coal enterprisesthrough mergers and acquisitions and the integration of industry resources,enhance the competitiveness of enterprises. Corporate governance is animportant systematic arrangement of enterprises, which will affects theperformance of mergers and acquisitions as well as the relationship betweenthe two. So the research on corporate governance performance of coalenterprises have what kind of influence is of great theoretical and practicalsignificance.This paper firstly summarizes the related research achievements of therelationship between corporate governance and the performance of mergersand acquisitions so as to lay the theoretical foundation for this research; andthen performs the empirical research on influence of corporate governancestructure of China Coal listing Corporation on the performance of mergers andacquisitions; finally the conclusion of the study put forward the correspondingcounter measures, and puts forward some suggestions for furtherimprovement.Using the principal component analysis of integrated scoringperformance of mergers and acquisitions of coal listing Corporation methodand descriptive statistics found that the overall trend decreased first and thenincreased. Further, the influence of coal listing Corporation governancestructure on M&A performance problem, affect the use of multiple linear regression model from the proportion of state-owned shares, ownershipconcentration degree two aspects of ownership structure on M&Aperformance; from the size of the board of directors, the proportion ofindependent directors and two duty state three aspects of influence of boardstructure on the performance of mergers and acquisitions; from the aspects ofmanagement compensation management incentive effect on the performanceof mergers and acquisitions.The results of this study show that: firstly, in terms of the effect ofownership structure on the performance of mergers and acquisitions, thelisting Corporation of the proportion of state-owned shares and ownershipconcentration is negatively related with M&A performance. Is mainly due tothe national coal listing Corporation shares and shareholder of companymanagement is essentially control the situation, resulting in the absence ofregulation, and the lack of equity checks and balances, that M&Adecision-making become executives realize their own interests; secondly, thestructure of the board of directors to influence the performance of mergers andacquisitions, the proportion of independent directors and the separation of twostaff have positive correlation with the performance of mergers andacquisitions, but the size of the board of directors on M&A performance isnegatively correlated. Analysis: the first two as the mechanism of balance ofpower, can reduce the big shareholder occupy the interests of smallshareholders in a certain extent, ease the problem of internal control, improvethe performance of mergers and acquisitions. The latter may be delayed actiontime due to fail to reach a consensus on whether mergers and acquisitions,major decision-making problem, reduce the efficiency of corporategovernance so as to reduce the M&A performance; thirdly, managerialincentive effect on the performance of mergers and acquisitions, managementcompensation and merger and acquisition performance is positively related.This is mainly because the top managers hold down their paid for their own interests to initiate the possibility of mergers and acquisitions, mergers andacquisitions decision will ultimately improve the performance of theenterprise.Finally, put forward the following suggestions according to theconclusions of this study for the influence of corporate governance structureon the performance of coal listing Corporation: be cautious of reduction ofstate-owned stocks, maintain a reasonable ownership structure; ensure theindependence of the board of directors; establish the reasonable incentive andrestraint mechanism.