Influence Factors Of Cross-border M&A Premiums

Now,M&A has become the most important means of resource allocation strategy of enterprises,compared with the natural growth and seek development through innovation,merger and acquisition can make the enterprise obtain more rapid growth,its success on the scale and development areas of the company with a fast and profound,but also because of the success of the merger is the key in the process of the merger and acquisition,merger and acquisition of enterprises to gain control of target companies will often pay a high premium.Cross border mergers and acquisitions,as a special branch of M&A,has become more and more intense in recent five years.2014 and 2015 years can be regarded as the blowout period of cross-border mergers and acquisitions.The high premium of cross-border mergers and acquisitions have seriously disrupted the market order,violated the rights of minority shareholders,thus causing the Commission market management attention,and the relevant regulatory measures are introduced,mergers and acquisitions monitoring efforts to increase the high premium for cross-border mergers and acquisitions has been effectively controlled.However,one of the prerequisites for overpricing the cross-border M&A is to know the factors that influence the premium of cross-border mergers and acquisitions,and to formulate corresponding regulations and laws with reference to relevant factors,so that solving problems will be much more effective.The past research is usually based on the research of the main body of mergers and acquisitions.The analysis of the influencing factors is also focused on the merged enterprises or enterprises themselves,and the research based on cross-border mergers and acquisitions is a relatively small subject.The M&A market in China started late,and the macro-economic environment of our country is not perfect,and there are many problems in the market regulations.At present,the regulatory authorities' requirements for cross-border mergers and acquisitions have been stricter and stricter.New approval requirements and enterprise regulations have also been promulgated.It has raised higher requirements for finding out the influencing factors of cross-border M&A premium to control excessive premium.Based on such a merger and acquisition environment,this paper explores the factors that influence cross-border M&A premium and the market reaction brought by M&A premium from four perspectives,so asto find out the measures to control cross-border M&A flooding.The China Shenzhen two city A shares of listed companies as the research object,carries on the empirical research selects 2012-2016 years data were verified:(1)cross-border mergers and acquisitions of the merged party of the industry affect the growth of cross-border merger premium;(2)the main and side management overconfidence effect on cross-border mergers and acquisitions premium;(3)the main effect of the acquirer's performance of the company to cross-border mergers and acquisitions premium;(4)effects of cross-border mergers and acquisitions M&A payment premium,the part focuses on comparing the cash payment and stock payment of the two payment of the premium.The empirical results show that:(1)merged enterprise industry in growth,cross-border mergers and acquisitions of a higher premium;(2)the main and side enterprise managerial overconfidence,cross-border mergers and acquisitions of the premium is high,which is positively correlated;(3)the main business potential and smaller enterprises,cross-border mergers and acquisitions more premium there is high negative correlation;(4)cross-border mergers and acquisitions choose cash or stock payment way affect the acquisition premium to a great extent,the shares to pay more than the cash payment corresponding to cross-border higher acquisition premium;(5)compared to the strict and perfect policy,influence factors of cross-border mergers and acquisitions to improve the policy before the premium more pronounced;(6)compared to the state-owned enterprises,related factors of cross-border mergers and acquisitions premium in non-state-owned enterprises is more significant.