Research On The Relationship Between Board Heterogeneity And Corporate M&A Transaction

In recent years,with the rapid growth of China's economy,M&A transactions have gradually become one of the major ways for Chinese companies to adapt to the trend of the times.However,compared with the global average,the success rate of Chinese M&A deals has been low,with more than 30%.One of the M&A transactions could not be reached as scheduled for various reasons.What is the reason for such a large-scale merger failure?According to existing survey data,the strategic formulation of M&A transactions,the failure to identify risks in a timely manner,and the choice of M&A target companies are the biggest reasons why Chinese M&A deals have not been successfully concluded.Therefore,most scholars try to use M&A incentives,M&A capabilities,and target companies.From the perspective of equal angles,the reasons for the failure of corporate transactions are studied,but the impact of the decision-making quality of the internal management team of the company is less considered,especially the influence of the characteristics of the board of directors of the decision-making level and the merger and acquisition of the company.The board of directors,as a decision maker at the top level of the company,is a direct participant and decision maker in the merger strategy of enterprises.It is the main leader in the implementation process of mergers and acquisitions and is responsible for allocating resources to all parties.The effectiveness of its decision-making quality is directly affected.Can M&A transactions be successfully completed?Therefore,this article takes the sample of M&A transactions of listed companies from 2003 to 2017 as a sample.Based on the theory of high ladder teams and social identity theory,from the perspective of team internal conflict,on the basis of the classification of board heterogeneity,we examine the heterogeneity of different types of board of directors.Sexuality,and the logical relationship between the strength of the internal fracture zone of the board of directors and the merger and acquisition transactions of the company based on the characteristics of the board of directors.The study found that:(1)the social heterogeneity of the board of directors was negatively related to the M&A transaction;(2)the board's functional heterogeneity was positively related to the M&A transaction;(3)the strength of the board of directors' fracture zone was negatively related to the M&A transaction.The strength of the board of directors' fracture zone will increase the negative relationship between board social heterogeneity and corporate M&A transactions,and inhibit the positive relationship between the board's functional heterogeneity and corporate M&A transactions.Significance of research:The research results of this paper can help companies improve the internal governance structure and optimize the institutional design of the board member configuration.It is convenient for companies interested in M&A transactions to optimize the composition of board members according to characteristics matching,thereby improving the quality of enterprise decision-making and improving the success of mergers and acquisitions.Rate,and lay a good foundation for the integration of enterprises after mergers and acquisitions to provide reference.