Acquire's Earnings Quality,Largest Shareholders And The Choice Of Payment Method

In China's capital market,more and more listed companies choose mergers and acquisitions(M&A)to expand the scale of production and operation,increase market share,enhance the strategic position of the industry,and enhance the competitiveness of enterprises.The choice of payment method is an important part in the decision making process,and it is also one of the important factors to decide whether a merger can be completed successfully.Because of the late start of China's corporate mergers and acquisitions,the payment methods are relatively single,mainly in cash.However,with the deepening of reform of non-tradable shares,the capital market has gradually developed,which creates the conditions for the payment of the stock in the M&A.On the other hand,the sound of the relevant system also contributed to the development of the stock payment,making China's payment methods of M &A way to show the trend of diversification.Equity mergers and acquisitions are becoming more and more common,more and more important,which makes the study of the mode of payment,including the share of the payment is more meaningful.The influencing factors of the mode of payment of M&A has been a hot issue in M&A behavior,This paper mainly studies the impact of earnings quality and ownership structure on M & A payment methods,and the mechanism of these three mechanisms.In the part of theory analysis,this paper combs and analyzes the relevant theories of earnings quality,the choice of ownership of large shareholders and payment methods of M & A and the domestic and foreign literatures,and analyzes the two measurement methods of earnings quality,including earnings management The quality of earnings under the angle of the quality of cash flow and earnings quality.It points out that M & A payment mainly includes cash payment,stock payment and mixed payment.While the choice of payment factors are varied.Based on the theory of information asymmetry,contract theory and principal-agent theory,this paper analyzes the impact of earnings quality and the ownership of large shareholders on the choice of M & A payment methods,and the mechanism of them,and puts forward relevant hypotheses and empirical models.Based on this,this paper selects 2010-2014 China's Shanghai and Shenzhen stock markets occur A-share listed company merger and acquisition activity as the research sample,from the CSMAR database and wind database selection data related research,adhering to the study of empirical thinking,using descriptive statistics,correlation coefficient test and multiple linear regression method studies the mechanism of acquirer's quality,the first big shareholder and payment method.The research shows that: Firstly,whether in the cash flow perspective,or earnings management perspective,acquiring firms with low earnings quality will finance their acquisition with stock payment method.Secondly,bidders prefer cash method of M&A transactions when a bidder's largest shareholder has an intermediate level of the stock in the scale of 20%-60%.Thirdly,in the cash flow perspective,largest shareholder may override the impact of earnings quality on the choice of payment method in M&A.High and low largest shareholder will favor stock acquisition while intermediate levels of largest shareholder will favor cash regardless of earnings quality.In the earnings management perspective,the regulation of large shareholders holdings have not been verified.The research conclusions enrich the factors influencing the mode of payment,which has theoretical and practical significance.