Ownership Structure, Mode Of Payment And The Performance Of M&A

After the financial collapse in 2008, the developed countries go into a recovery in economy. But initial economy develops slowly. IPO was at a standstill, so mergers become an important way to listed companies. Companies use mergers to optimize the allocation of resources. In such a case, mergers of 2013 increased tremendously. Every industry has merger. Economic globalization and financial collapse provide Chinese capital market new opportunities and challenges. How to develop in a complex environment and how to take control in place of capital market are the most important subject. Although M&A waves are as one falls, successful mergers are only a small proportion. So research about mergers is necessary.Existing documents about mergers focus on event study and finance data method. Scholars use stock price and finance data to analyze performance of M&A. Existing documents indicate that mode of payment affects performance of M&A. And mode of payment depends on ownership structure and debt structure. This paper base on the sample of 2013 and use malmquist and multivariate regressive method to investigate the relationship among ownership structure, mode of payment and the performance of M&A. Malmquist is used to calculate enterprise efficiency. As usual the object of mergers is to maximize the enterprise values. This paper uses malmquist to examine enterprise efficiency. Then multivariate regressive method is used to analyze the effects of performance of M&A.We find that ownership structure affects mode of payment though empirical analysis. Compared to private enterprises, state-owned enterprises would like to choose to pay in cash. The enterprises with high shareholding proportion of the controlling shareholder or low are willing to use to pay in stock. Managerial ownership also affects payment. Higher managerial stockholding level is, pay in stock the enterprise will choose to. Similar to existing documents, mode of payment is one of effects of performance of M&A. Payment in stock brings better performance of M&A. Ownership structure and mode of payment influence performance of M&A together. Compared to existing documents, this paper deepens the research on mergers. Existing documents mostly focus on finance data method, but this paper uses malmquist to empirical analysis. This paper analyzes ownership structure and mode of payment and performance of M&A based on theory at first. Then at the last part of this paper, we give some advice to enterprises though result of empirical analysis.