The Research Of Corporate M&A Influence Factors And Its Economic Consequences

Companies can get a variety of resources through mergers and acquisitions, the most obvious such as production capacity, market share, and human capital, etc. Facing so many opportunities of mergers and acquisitions, corporate managers what will do? Mergers and acquisitions really can bring benefits for the enterprise? This paper link together the managers’ overconfidence, M&A and performance based on this background, and starting from the root of overconfidence-cognitive psychology, literature review, theoretical basis, and empirical test is the body of the context. Study of overconfidence began in cognitive psychology, in the field of behavioral finance, this article will also be part of the research in the field of the two made simple introduction.On the basis of predecessors’ research, in the part of literature review, this paper research literature about overconfidence and corporate mergers and acquisitions at home and abroad, and involves a simple interpretation of the concept, give a review of past research, find research opportunities in the process of literature review. Theoretical foundation part, dig for the overconfidence theory in this paper, the paper analyses the cause of overconfidence from the perspective of cognitive psychology; this is relatively rare in the literature. After the merger and acquisition related theory, analysis of merger and acquisition may bring enterprises benefits and resources, and finally to extrapolate overconfidence in mergers and acquisitions, explain the relationship of them, and put forward the research hypothesis.In the measure of overconfidence, this article first to summarizing and comparing is commonly used in domestic and foreign research, and then decides to use salary proportion which used in theory deduction part as the substitution variables. Mergers and acquisitions variables will be divided into the frequency of M&A and M&A scale(amount) test respectively in this paper, and finally, verify the mergers and acquisitions and CEO overconfidence effects on business performance. Based on the empirical finding, CEO’s overconfidence is a positive influence both for merger and acquisition of frequency and size; this means that the higher the overconfidence degree of the CEO, the more favors’ more frequent, bigger deals. In the performance evaluation part, the empirical results show that although the scale of M&A and the frequency is not very significant relation with performance is, however, after the occurrence of M&A, appeared a significant decline in performance. In addition, CEO overconfidence also has a negative influence on enterprise performance. Through the research, this paper not only continues research achievements of scholars in the past of the numerous, also set to be improved in the aspect of theory and index. Finally on the basis of the empirical test results, the article summarizes the research conclusion and put forward some suggestions.