The Study On The Influence Of Integration Reset Abilitybased Perspective On Target Selection In Acquistions

With the gradual improvement of China’s capital market,the financing instruments and payment methods are gradually diversified,which creates a good space for the M&A market,and more and more companies are involved in the wave.M&A is an important way for the company to optimize the allocation of resources and achieve the great leap forward development.But how to choose the right goals has always been the focus of academic circles.In recent years,the internal organization relationship creats important effects in the course of the enterprise value that has been widely recognized.More and more scholars begin to explore the organizational relationship from the perspective of capabilities,to enhance corporate value.In order to improve the value of M&A to enhance the enterprise,it is necessary for us to conduct in-depth research on the ability of enterprises,in order to guide the practice of M&A activities.Based on the integration reset ability,this study takes domestic M&A events from 2009-2012,in which targets are A-share listed companies as actual merger samples,and chooses potential merger samples through matching.We employ Logistic regressions to empirically test whether the lower integration reset ability increases the probability of being selected among potential targets.Then the study tests the different context factors to moderate that relationship.Then results show that the firms with lower integration reset ability are more likely to be selected among potential targets,particularly when acquirers and potential targets belong to different industries and regions.But when targets are privately owned,it doesn’t influent the relationship between integration reset ability and the probability of being selected among potential targets.