The Empirical Study Of Effect Of Board Ties On Firm Performance

In recent years,the M&A activities of enterprises has a wide attention by scholars both at home and abroad.Data shows that M&A events happen all the time,and the number and size are growing,so is there any positive influence of mergers and acquisitions bring to the company?Under what circumstances,the occurrence of M&A behavior for shareholders has wealth effect?"Whether M&A events create value" has become a important issue in the field of acquisition research.More from the existing research results,such as the characteristics of a single business executive overconfidence analysis enterprise M&A performance,which ignore the individual enterprise as an open one that is connected with the outside world.As a matter of fact,in order to survive and develop,the enterprise must continue to get a lot of resources.These resources not only come within the enterprise,also come from the outside of the enterprise.Namely,enterprises are embedded with social network,and the particularity of the current transformation of the economic environment in our country,our country enterprise is different from the western system of "relational society" in the background,social network has become the important way for enterprise to survive and develop.Therefore,in addition to economic factors,social network relations that embedded with enterprises can bring the enterprise lots of resources and opportunities which also deeply affect the enterprise mergers and acquisitions.A director at the same time serves as the chain director in two or more than two companies call the interlocking directorates of the enterprise,and the situation of the existence of interlocking directorates connection between two or more companies,we call board ties.Director coupling is at the same time serving as two or more listed companies,executives,directors and supervisors of members in the form of coupling relationship between the companies.As a kind of social network in enterprises,director of the joint has an important influence on enterprise mergers and acquisitions,besides,mergers and acquisitions within both sides of the director of the coupling can reduce the degree of information asymmetry,which is beneficial for both sides of the mergers and acquisitions for effective information communication and exchanges,and it becomes an effective transfer of private information network,which can familiar with each other with operating conditions and the enterprise culture,it can also reduce the degree of asymmetry in advance,and then,it can reduce the risk of master information respectively for the acquisition,and can also make M&A activities go effectively and reasonable,and finally improve the performance of M&A events.As we can see,our country’s enterprises have the common chain between the directors which has become a widespread fact,we believe that with our country stated the transition period of the special background,discussing how to establish and consummate director of coupling relationship between enterprises in our country is of great significance.And making full use of the relationship in social capital can promote the development of the enterprise through merger and acquisition act,which can integrate high quality resources for M&A synergy,and improve corporate performance of M&A,undoubtedly it has important practical significance.Based on the social network theory,information asymmetry theory,resource dependence theory and principal-agent theory,exploring the relationship between the director of the coupling and its effect on company mergers and acquisitions performance count.Among them,select all a-share listed companies from 2008 to 2013 as samples to study the effect of board ties of M&A performance,and expand the research in the case of mergers and acquisitions of companies that corporate governance level is high,board ties on the performance of M&A effect even more positive.For the innovation research,this paper further studied board ties and the relationship between the M&A behavior,selecting all a-share listed companies in 2011-2013 as sample research of the relationship between them.The study found that companies have more possibility of mergers and acquisitions which have directors connection behavior;Mergers and acquisitions within both sides of board ties and long-term M&A performance have a significant positive correlation;And after join in regulate corporate governance variables,mergers and acquisitions within both sides of board ties and long-term M&A performance has significant positive correlation.Around the research of board ties have great effects on company mergers and acquisitions performance,the article includes six parts.The first part is the introduction.At first,defining this important concept in the research,and then introducing the paper’s background and research of theory and realistic meaning,research methods and research purposes,and a simple introduction of the overall framework,at the same time to illustrate the innovation of the research.The second part is literature review at home and abroad and the enlightenment.This section from the board ties’ characteristics of the concept of director,board ties’effect on corporate performance,board ties and mergers and acquisitions,and board ties’ effect on M&A performance of the four aspects to carry on the literature review and comb,and on the basis of the literature was reviewed.The third part is the theoretical analysis and hypothesis is how to put forward.First of all,put forward and introduced the theoretical basis in this paper:social network theory,information asymmetry theory,resource dependence theory and principal-agent theory,and the integrated the theory used in this paper,the research hypothesis.The fourth part is the research design.Mainly introduces the research of data sources,sample selection,variable definition and model design.The fifth part is the empirical analysis.Mainly on the sample data descriptive statistics,correlation analysis,regression analysis and robustness testing.The sixth part is the conclusion,the short of the research and policy recommendations.