The Choice Of M&A Financing And The Impact Of M&A Performance—Vgrass M&A Teenie Weenie Case Study

M&A financing plays a key role in M&A.This paper mainly concerned about these two aspects:the influence factors of the enterprises to choose different ways of financing,and the second is the reaction of the capital market of M&A financing.This paper focuses on the choice of financing methods of listed companies in M&A transactions and their impacts on M&A performance,taking into account the large demand for funds and the limited funds within the enterprise.First of all,under the condition of controlling payment,this paper takes the large-scale mergers and acquisitions events of listed companies in China from 2014 to 2016 as the sample,and uses the event study to carry on the empirical research.The results show that different financing methods(equity financing,debt financing and own financing)have significant differences in short-term and long-term market performance for M&A companies,and equity financing is better than debt financing.Secondly,through the acquisition of Teenie Weenie,we analyze the market environment and the financial situation of Vgrass,and examine the financing options of listed companies in the case of financing constraints.The empirical study on the M&A event is carried out by using the event study to further prove that the debt financing can not play a positive role in the performance of M&A.