A Study On The Impact Of Capital Structure On M&A Payment

The development of modern economy is inseparable from the enterprise,they have a significant impact on social and economic progress and financial progress.On the macroscopic level,the development of the enterprise has a significant impact on the economy and finance of a society.M&A is an important means for enterprises to participate in these economic and financial activities.From the history of M&A,the M&A has achieved a comprehensive progress in the country,society and economy while promoting the development of the enterprise itself.M&A will undoubtedly have a far-reaching impact on a country and the society and economy.From the enterprise itself,to the tide of the modern economy in a place,must be the way to solve the survival and growth of enterprises,the fact that many companies through mergers and acquisitions to achieve the rapid development of enterprises and expand the market and brand.However,the complex process of M&A will encounter many aspects of the risk,the root of all risks in M&A are mostly from the financial and financial risks,the most important is the choice of payment methods.In fact,no matter what kind of M&A transactions,and finally settled down to the acquisition target company to pay up,whether the smooth payment directly determines the M&A transaction can be finally reached.In fact,how much to pay and in what way to pay depends not only on the wishes of the target company and its shareholders,but also on the acquirer's financial situation and financial chain of a huge test.Therefore,how to choose the appropriate payment method according to their financial status,capital structure and market performance,how to choose the payment method to minimize the possible risks in the process of mergers and acquisitions to achieve the success of M&A is important.On the basis of reviewing and commenting on the existing research results,this paper studies the impact of capital structure on M&A payment choice under the condition of stock market mispricing by normative research and empirical research.This article contains the following six parts:Part 1: Introduction.In this part,the background of this paper is expounded,andthe research questions are put forward,and the significance of the study is explained.Then the research method is introduced and the framework of this paper is constructed.Part 2: Theoretical basis and literature review.This part is divided into two parts:the first part is the theoretical basis.This part first defines the concepts of M&A,M&A payment,capital structure and stock market mispricing.At last,it combs the theories of capital structure,stock market mispricing and M&A payment,and provides a major theoretical basis to the empirical analysis;the second part is the literature review.This section summarizes the results of the existing studies on the impact of M&A payment mode,the impact of capital structure on payment method and the impact of stock market mispricing on payment method.Part 3: The Present Situation of Payment Methods of Listed Companies in China.First,this part analyzes the basic situation of M&A transactions of listed companies in our country,and then analyzes the basic situation of payment methods,which lays the basis for the empirical analysis.Part 4: Research design.In this part,we first select the independent variables,dependent variables and control variables in the model,and then propose three hypotheses based on the theoretical analysis.Finally,this paper constructs an empirical model.Part 5: Empirical analysis.In this part,we first introduce the sample selection and data source of this paper.Then we use the descriptive statistics to analyze the independent variable,the dependent variable and the control variable.Finally,the Logit model is established to study the influence of capital structure on the payment method under the condition of mispricingt,and the robustness of the conclusion is tested by the robustness test.Part 6: The conclusion and inspiration.In this part,three conclusions are drawn as follows:(1)In China's M&A transactions,asset-liability ratio has a significant impact on the choice of M&A payment methods,The higher the asset-liability ratio,the less likely that the M & A enterprises will choose the cash payment method.(2)The mispricing of the stock market has a significant effect on the choice of the paymentmethod,and when the stock price is overvalued,the M&A firms are more likely to choose stock payments than cash payments;(3)When the share price is overvalued,the effect of asset-liability ratio on M&A payment is more obvious.At this time,M&A enterprises have more incentive to choose stock payment method.Finally,some suggestions are put forward according to the research conclusion.