M&A And ERP System Reorganization

M&A has a history of more than 100 years.M&A is one of the important ways for enterprises to gain resource advantage and market position.The "M&A in Disruption: 2018 in Review" released by Bain company shows that the global M&A scale is growing by more than 17%.In the context of such a hot M&A transaction,many scholars at home and abroad generally come to the conclusion that M&A can bring excess earnings to the target party,but it will cause losses to the acquirer,and the performance of M&A is not ideal.We have combed the views of scholars on this issue,most of which are related to the theory of information asymmetry.As scholars at home and abroad have put forward a lot of valuable views on alleviating the information asymmetry before M&A,this paper focuses on the information asymmetry of the group and its subsidiaries after M&A,looking for ways to alleviate the information asymmetry between the group and its subsidiaries,increasing the group's understanding of the subsidiaries,in order to timely allocate resources and correct improper behaviors and so on.Since Wylie of Gartner Group put forward the concept of ERP in 1990,ERP has been gradually recognized,known and used by enterprises.Up to 2006,Chinese enterprises have basically completed the process from realizing ERP to importing ERP.According to the report of Jishi information and China Software Industry Association,we know that the scale of ERP market is growing,and enterprises hope to improve their competitive advantage and economic performance with the implementation of ERP.Scholars have found that ERP system can effectively alleviate the problem of poor information communication between shareholders and managers,managers and employees,reduce the agency cost of enterprises,improve the flow speed of enterprise information,and effectively alleviate the problem of information asymmetry within enterprises.Therefore,this paper will establish a connection between M&A and ERP system reorganization,and discuss the behavior of ERP system reorganization of group enterprises after M&A from the perspective of information asymmetry,and study the impact of ERP system reorganization on the performance of M&A.This paper takes the listed companies on Shenzhen main board from January 1,2008 to December 31,2018 as the research sample.Firstly,this paper studies the relationship between M&A and ERP system restructuring,and puts forward hypothesis 1.Secondly,based on the M&A sample,this paper classifies the M&A according to the degree of information asymmetry of M&A characteristics,and studies the frequency,scale,local characteristics,transnational characteristics and the target's top priority.Thirdly,on the basis of hypothesis 1,we choose foreign participation as a moderating variable to explore the impact of foreign shareholding ratio on the relationship between M&A and ERP system restructuring.Finally,we explore the relationship between ERP system restructuring and M&A performance.This paper finds that:(1)after M&A,enterprises tend to restructure their ERP system;(2)for the relationship between M&A characteristics and ERP system restructuring,the greater the frequency of M&A,the more likely enterprises are to restructure their ERP system;compared with M&A in the same place,enterprises in different places are more likely to restructure their ERP system;compared with domestic M&A,enterprises in transnational M&A are more likely to restructure their ERP system;in the empirical analysis department In this paper,we did not find the significant relationship between M&A scale,target party's listing characteristics and ERP system reorganization;(3)we took foreign investment participation as a moderating variable,and found that foreign investment participation had a significant positive moderating effect on M&A and ERP system reorganization;(4)we took M&A samples as the research object,and found that ERP system reorganization can significantly improve the performance of M&A;(5)This paper considers that the larger the scale of M&A in the same year,the longer the pre deployment of ERP system reorganization will last,which will lead to the delay of ERP system implementation.Therefore,in the further analysis,we lag the scale of M&A by one period,and find the significant positive relationship between the scale of M&A lagging by one period and the reorganization of ERP system;(6)in the further analysis,we measure the transparency of the whole enterprise based on the evaluation results of information disclosure published by Shenzhen Stock Exchange,and find that after the implementation of ERP system,the overall transparency of the enterprise is significantly enhanced;(7)In the part of robustness test,we use the method of propensity score matching and one period lag of independent variables to test the main conclusions of the article.The test results are consistent with the previous research conclusions.This paper establishes an empirical analysis model of M&A and ERP system reorganization,and enriches and perfects the model from the perspective of information asymmetry.This paper reveals the positive relationship between M&A and ERP system reorganization.In addition,the greater the risk of information asymmetry faced by the group enterprise after M&A,the more likely it is to restructure its ERP system.The reorganization of ERP system eases the degree of information asymmetry within the group enterprise and improves the performance of M&A.This paper provides solutions and reference for improving the degree of information asymmetry and improving the performance of M&A.