Institutional Environment,Mergers And Acquisitions(M&A) Supported By Private Equity Funds And Its Long-term Performance

Today,more and more companies are taking M&A as a strategic policy to expand the scale of the industry,optimize the allocation of resources and enhance the performance of the business.As a private equity fund with strong capital and professional team,it is also willing to support the M&A activity.The Private equity funds to support mergers and acquisitions is the integration of industrial capital and financial capital,as a capital link with its professional management team and a wealth of practical experience in the cultural,financial and technical integration,reducing the risk of mergers and acquisitions and improving the performance of mergers and acquisitions.Especially in recent years,the shadow of private equity funds can be seen in large-scale cross-border mergers and acquisitions.In 2008,Hony Capital,Mandalay and Goldman Sachs three private institutions jointly support Zoomlion acquisition of Italy CIFA;In 2012,CITIC Industrial Fund to help Sany Heavy Industry acquisition of Putzmeister Germany;In 2013,Belle marriage Japan Baroque,Which also has Ding Hui,Morgan Stanley in the capital and technical support.But at the same time,private equity funds are also considered"ineffective supervisors" to illustrate its speculative arbitrage for the purpose of ignoring the corporate governance,as the capital market predators to support the performance of mergers and acquisitions after the decline,playing a negative role.Therefore,through the collection of data,empirical analysis of the method to study the effectiveness of private equity funds to support mergers and acquisitions on the performance of mergers and acquisitions is positive or negative?In addition,the institutional environment is very important for institutional investors to enhance the performance of corporate mergers and acquisitions is particularly important.It has been found that a good institutional environment can protect investors from institutional investors.Therefore,this paper introduces the factors of institutional environment to study whether private equity funds support mergers and acquisitions can significantly improve the performance of mergers and acquisitions,whether the institutional environment differences affect private placement The Role of Equity Funds in Promoting M&A Performance.This paper takes the M&A event of A-share listed companies in 2011-2013 as the research sample,puts forward the hypothesis,establishes the empirical model and draws the following conclusions.First,from the perspective of corporate governance,private equity funds to support corporate mergers and acquisitions can significantly enhance the performance of mergers and acquisitions;Second,from the perspective of property rights,the total sample is divided into state-owned and non-state nature of the two groups found private equity funds in the non-state-owned companies can improve the performance of mergers and acquisitions,and in the state-owned nature of the company to support mergers and acquisitions M&A performance has no effect;Third,the introduction of institutional environment variables,from the market environment,financial environment and legal environment,the positive impact of the private equity fund on the performance of the M&A performance is more obvious in the areas where the product market is better.The development of the factor market and the decrease of the development of the market intermediary organization and the legal system will enhance the positive impact of the private equity fund on the M&A performance.Finally,the conclusion of the above research is summarized and suggestions are made according to the conclusion.