A Research On The Impact Of Institutional Investor’s Shareholding On M & A Performance From The Perspective Of Property Right

In recent years,the trend of M & A of Chinese enterprises has been rising.The number and the amount of M & A have been increasing.M & A market in 2015 reaches a new height.In the context of national economic restructuring,the environment of China’s M & A market goes further and the pace of mergers and acquisitions continue to accelerate.At the same time,institutional investors in China’s capital market is also growing.As the nature of different property rights,corporate governance structure is also different,the role of institutional investors is also different,so from the perspective of the nature of property rights,this paper researches the impact of institutional investors on mergers and acquisitions performance under different property rights.In this paper,Shanghai and Shenzhen A shares of 799 listed companies in 1024 cases of mergers and acquisitions are as the object of study.Based on the research results of domestic and foreign scholars,the study samples are divided into the sample of state-owned enterprises and the samples of non-state-owned enterprises.Three hypotheses are put forward based on the Motivation Theory of M & A,Principal-agent theory,Control theory and Corporate governance theory.10 financial indicators of profitability,solvency,operation and development are selected and the comprehensive score of M & A performance is calculated by the factor analysis method.The difference between the one year after M & A and the one year before M & A is the dependent variable.The proportion of the institutional investors holding,institutional investors’ checks and balances on the largest shareholder,active institutional investors and negative institutional investors holding ratio of are independent variables.The empirical results show that: the proportion of institutional investors is positively correlated with the performance of M & A,and this positive effect is more significant in the non-state-owned enterprise sample group.Institutional investors’ checks and balances on the largest shareholder have a significant positive correlation with the performance of M & A,which is significant in non-state-owned enterprises.In the process of institutional investors are divided into positive institutional investors and negative institutional investors,the regression results of the total sample shows that positive institutional investors’ ownership is significantly positively correlated with M & A performance,negative institutional investors are significantly negatively correlated with M & A performance,and both of them are significant in non-state-owned enterprises.Finally,based on the research conclusion,this paper puts forward some suggestions,such as expanding the scale of the positive institutional investors,widening the channels and means of the institutional investors to participate in the corporate governance,reducing the government intervention,perfecting the capital market mechanism and creating a good investment climate,which can provide reference for strengthening the role of institutional investors in supervising governance and enhancing M & A performance.