Research On Overconfidence Of Managers With Mergers And Acquisitions

Since the end of the 19 th century,the global economy has multiple wave through m&as,every time a wave of m&a in the motivation of technological change,and along with the industrial transformation and upgrading,and they backward productivity gradually replaced by the new and advanced productivity,can be thought of m&as in the process of global economic development play a positive role.Judging from the economic results of the m&a.,most m&a activity is not successful,but a lot of mergers and acquisitions are still going on.For this phenomenon,scholars have studied the motivations of initiating m&a activities.For managers to initiate the motives of m&as,former research from three angles: the first kind of motivation,merger and acquisition activity can produce one plus one is greater than two synergistic effect,can make the enterprise after the merger creates greater than the value of the target company and the main and companies to create the value of the sum.The second motivation is the contradiction between the agents because of the separation of management rights and ownership.The agents may give up enterprise value maximization and shareholder value maximization due to the rational consideration of the maximization of his own interests.The third reason is the overconfidence of the owners of the merger and the management of the company.Scholars found that company managers about their cognitive deficiencies,to oneself have too high expectations,overestimate their own business and management ability,overestimate how m&as of financial synergies and underestimate the risk in the merger and acquisition activity itself,thus initiated the low efficiency of m&a.Is the research on the influence of overconfidence managers on the selection of m&a in the western scholars applicable to the m&a market in China? Are the indicators used by foreign scholars to measure the overconfidence of managers applicable to the managers of listed companies in China? For these doubts,in this paper,under the framework of corporate finance,through the theoretical analysis of China’s listed companies in China in 2009-2009 m&a cases as research samples,studied the merger in case analysis,in order to put forward three problems: top managers overconfidence of Chinese listed company whether the cognitive deviation of impact on the enterprise m&a has launched? Has previous m&a experience made overconfident managers more likely to choose m&a? Are overconfident managers of Chinese listed companies more likely to launch high-frequency m&a?This paper first elaborated the research background and research significance,including research ideas and research methods,the framework structure of this paper,and finally briefly elaborated the innovation points of this paper.Secondly,this paper summarizes the research and development of domestic and foreign mainstream theories of m&a motivation and managers’ overconfidence theory,and provides theoretical support for this paper.Then,through analyzing the existing situation of China’s m&a market,this paper puts forward the actual research value of this paper.Then,on the basis of the previous research,Logistic multiple regression model was used to test the influence of overconfidence of managers on the selection of m&a and the high frequency of m&a.According to theoretical analysis and empirical test and the result was summarized in this paper,the main research conclusion,the Chinese cognitive bias of overconfidence of the senior managers of listed companies and enterprises launched m&a behavior showed positive correlation;Previous m&a experience is more likely to encourage overconfidence managers to choose m&a behavior;Overconfident managers of Chinese listed companies are more likely to launch high-frequency mergers and acquisitions.At the same time,the corresponding enlightenment is summarized for the above research conclusions.Finally,this paper analyzes the shortcomings of this paper and points out the future research direction...