Research On The Influence Of Vertical Merger And Acquisition On The Efficiency Of Asset Management

Mergers and acquisitions provide enterprises with opportunities for industrial integration and expansion.With the acceleration of the global economic development and the gradual rise of the capital market,enterprises have regarded mergers and acquisitions as an important way of growing and expanding.Through the vertical merger,enterprises can optimize the allocation of resources,control the market risk,form the upstream and downstream industry chain,break the bottleneck of development and industrial barriers,form a strong core competitiveness,and complete the accumulation of capital in a short period of time.At the same time,each enterprise also leads to the rapid growth of the national economy in the process of rapid expansion and optimizes the industrial structure of the national economy.Vertical mergers expand the operating boundaries of enterprises,and replace the market transactions with internal management,thus saving transaction costs,consolidating the supply and marketing channels of enterprises,achieving vertical integration and improving enterprise performance.Because of the complexity of mergers and acquisitions,studying only changes performance cannot fully determine the success of mergers and acquisitions.Asset management efficiency is an important index to judge the efficiency of business operation,and can measure profitability and risk of the business.At the same time,the paper uses the coefficient of reflecting each economic entity's input-output to measure the vertical correlation among departments,so as to make an empirical study on the relationship between the vertical merger and the asset management efficiency of acquiring company.This paper takes vertical mergers occurred in 2004-2013 on the two cities of Shenzhen and Shanghai A shares manufacturing companies as research samples,constructs a measure of the degree of vertical integration,and selects vertical merger transaction data.First of all,this paper analyzes the relationship between the vertical merger and the asset management efficiency of acquiring company by using t test,then uses multiple linear regression model studying the effect of the degree of vertical integration between the acquirer and the target firm,asset specificity and the degree of marketization of acquiring company on the synergy of asset management.The results show that vertical merger transactions can significantly reduce the accounts receivable turnover period,the stock turnover period,the cash turnover period and the total assets turnover period of acquiring company.When other conditions remain constant,the higher degree of vertical integration between the acquirer and the target firm is,the higher degree of asset specificity of acquiring company is and the higher degree of marketization of acquiring company is,the more obvious the asset management efficiency promote by vertical merger.The results of this study provide theoretical and empirical basis for carrying out vertical mergers effectively.