Research On The Influence Of Setting Up Anti-takeover Provisions On Business Performance In Innovative Enterprises

The dispute between hostile takeovers and anti-takeovers has been the subject of continuous discussions in the world for two centuries.The development of the capital market in our country lagged behind.However,after the Full Circulation Reform,the situation of decentralized shareholdings of quoted companies was increasing,which provides favorable conditions for buyers and the acquisition market was increasingly prosperous.The confrontation between hostile takeovers and anti-takeovers has occurred frequently in our country,leaving companies with dispersed ownership a sense of crisis.Some companies planned ahead to prevent hostile takeovers by setting anti-takeover provisions(ATPs)in their company policy.ATPs as the main form of expression in the anti-takeover strategy are the low-cost and high-efficiency autonomy methods that the target companies commonly use in the company policy.Although the acquisition is an effective corporate governance mechanism under traditional agency theory and control market theory,due to the existence of short-sighted behavior,negotiating income,business stability and other principles,the ATPs are not always inefficient.Firstly,through theoretical research,it was found that the ATP had two-sided influence on the value and performance of the company,and there were also differences in the impact of different ATPs.In particular,for innovative companies that paying more attention to the improvement of corporate value,in the R&D phase with lower input-output ratio,they were more motivated to make the managers focus on the long-term value investment of the enterprise by setting ATPs.Also,this kind of enterprises have more possibilities to use the positive influence of ATPs.Therefore,innovative enterprises became the research object of this paper because of their particularity in the acquisition and anti-takeover markets and importance of National Development Strategy.Then,this paper introduced the status of enterprises that set up ATPs in the current acquisition market,and gradually reduced the scope to the typical enterprises in the innovative enterprise sample.Then summarized the Enterprises—Based on DFD Case Study characteristics of ATPs set by these enterprises.And then choose the most typical case DFD in ATP-setting up successfully ones for more in-depth exploration.The paper had analyzed the changes in the operating performance of the company before and after the setting up of ATPs from five aspects: innovation ability,degree of tunnel,profitability,market position,and operational ability.The ATPs had a continuous positive impact on improving the company’s ability to innovate and reduce the degree of tunnel,but the short-term magnitude was greater than the longterm;the market position and profitability had improved significantly in the short term,but had declined in the long term.There was no significant effect on operating capacity.Finally,the paper concluded that the establishment of ATPs had a clear positive impact on the business performance of innovative companies.This kind of influence had a certain degree of selectivity,positive and weak-continuity characteristics.Today’s policy environment imposes a relatively high degree of restrictions on its use,and there were no clear terms that can be based on.However,since the establishment of ATPs did indeed the advantages outweigh the disadvantages,markets and governments could increase their acceptance.In order to improve these issues,five policy recommendations were proposed at the end of the paper,and will be continuously revised and improved in the future theoretical learning and practical experience.The main innovations of this paper were: Firstly,based on the existing theoretical basis,the theoretical framework of the impact of ATPs on business performance was constructed.Secondly,taking innovative enterprises as research objects was conducive to exploring the positive aspects of ATPs.Thirdly,it clarified the measurement indicators of the innovative enterprise’s operating performance,and used case studies to verify the theory,so that the study of this article was more persuasive.