Research On The Relationship Between Equity Concentration,Executive Equity Incentive And The Enterprise M&a Performance

The U.S.subprime crisis of 2008 has a certain impact and influence on our country market,such as for mergers and acquisitions market scale,in 2008 after the m&a market scale increased year by year,reached its peak in 2011.Under the biggest wave of mergers and acquisitions,for each of the merger and acquisition enterprise m&a is reasonable or a merger of the decision making of top managers is based on what motive,whether through mergers and acquisitions to achieve the growth of the enterprise long-term performance,this a series of problems relating to mergers and acquisitions worth scholars and enterprises to study the internal and external stakeholders.Under the background of two rights separation and the principal-agent problems,target the interests of managers and owners can't completely consistent,improving the company's incentive mechanism,giving executives equity incentive,to the final decision behavior of company mergers and acquisitions and mergers of quantity,quality and merger and acquisition performance can produce effect of growth for a long time.Enterprises as the basis of sample,therefore,this article selects m&a research executive equity incentive to the enterprise long-term relationship between the influence of operating performance,to perfect the equity incentive mechanism and improving m&a enterprise long-term performance has a certain practical significance.This paper uses literature research,combining normative research and empirical research and comparative analysis on main content of thesis research.First of all,according to the reading related literature both at home and abroad,provided in this paper,we study the determination of main direction and theoretical support;Second,the ownership concentration,top managers and clearly defined related concepts of equity incentive,reference the related theory,such as the principal-agent theory,contract theory,human capital theory and synergy theory and so on,and according to the related literature research conclusion puts forward the assumption that the relationship between variables;Finally,the empirical part,based on the main board and gem,small and medium-sized board in 2011-986 listed companies of m&a in 2013 as the basis of sample,to study the change of before and after m&a performance at the same time,each of the listed company and select the previous year,that year,a year after the merger,two years after the merger of data as sample,eventually produce 3944 sample data,with earnings per share as a quantitative index of the enterprise performance,using the least square method to equity concentration,the relationship between the equity incentive and corporate performance empirical test.Through the above analysis,hope to answer the following questions:(1)the equity incentive is offered to senior managers can promote long-term growth of enterprise performance(2)the ownership concentration and corporate performance show what relation(3)for different enterprise ownership concentration,executive equity incentive intensity of influence on the performance of m&a enterprises are the same.Through analyzing overall return all samples to the following conclusion:(1)With the increasing of the strength of the enterprise executive equity incentive and corporate performance is also increased.Executive equity incentive,can make the managers and shareholders to have consistent goal,merger decisions will be from the long-term interests of the enterprise,such as there will be no hostile or blind expansion and other short-term behavior.(2)Positive correlation between corporate performance and ownership concentration.With the increase of enterprise ownership concentration,the first largest shareholder is closely related to corporate interests for their own interests,or even realize that is itself the largest share interests in companies,large shareholders may be on the enterprise's daily operation and making important decisions tend to be a rational or is a fair attitude,promote the increase of business performance.Grouped by equity concentration for classification standard to return to the following conclusions: for corporate equity is relatively concentrated,the equity incentive and the correlation between corporate performance improved,for diffuse ownership and equity absolute concentration of listed companies,equity incentive and performance of the enterprise the influence degree of the correlation between no too big difference,but are less than the correlation coefficient of equity is relatively concentrated.Finally,based on the research conclusion for the m&a enterprise on the executives' equity incentive mechanism design and the ownership concentration and equity incentive comprehensive consideration of the influence of enterprise performance gives the corresponding policy recommendations and references,and in the end of the article,this paper expounds the quantitative research Angle,the variable selection and data aspects of deficiency,pointed out in this paper,we study the problem of the future development direction.