The Relationship Between Overconfidence Of Managers,M&A And Enterprise Performance

In recent years,due to the continuous development of China's capital market,enterprise mergers and acquisitions have been continuing.In 2006,the formal implementation of the administrative measures on the acquisition of listed enterprises in China stimulated the enthusiasm of m&a and reorganization of listed enterprises in China.enterprise mergers and acquisitions can realize the optimization of resource configuration,and can in price negotiations in a dominant position,with priority to obtain the low prices of internal resources,gain the key technology of the product,to promote enterprise production costs down.At the same time through mergers and acquisitions to expand the size of enterprises and improve their market share,increase their market competitiveness.Diversified m&a can also be used to enter a new field.In order to realize the rapid expansion of its scale,small and medium-sized enterprises often choose m&a to recombine enterprises.Managers who have a tendency to overconfidence psychological often make high prediction to benefit gained by the implementation of mergers and acquisitions,while ignoring the potential harm,resulting in the performance of m&a causing the failure of the enterprise is low.To small businesses from the perspective of exploring the managers overconfidence,m&a behavior and possible relationship between enterprise performance and the interaction,the paper will managers overconfidence,m&a behavior and enterprise performance is analyzed,it is pointed out that different levels of overconfidence of managers have different effects on enterprise performance,and different behaviors of enterprise m&a have different effects on enterprise performance.Papers in 2013-2016 in our country small and medium-sized enterprise board listed companies as samples,respectively with three executives before relative compensation ratio and number of executives shareholding changes as two indicators to measure managers overconfidence,by screening 1574,it is concluded that managers overconfidence sample selection Tobin Q value as a measure of enterprise performance variables,mergers and acquisitions act as virtual variables,finally be managers overconfidence sample 257 samples and the implementation of merger and acquisition activity.SPSS21.0 was used to carry out descriptive statistical analysis,correlation analysis,regression analysis and robustness test for overconfidence of managers,m&a behaviors and enterprise performance.The following conclusions are obtained:(1)There is a significant negative correlation between the overconfidence level of managers and enterprise performance,that is,the enterprise performance of moderately overconfident managers is better than that of severely overconfident managers.(2)The overconfidence level has a significant negative correlation with the m&a behaviors of enterprises,that is,compared with the moderately overconfident managers,the severely overconfident managers are more inclined to the non-related m&a.(3)There is a significant positive correlation between enterprise m&a and enterprise performance,that is,the performance of enterprises implementing related m&a is better than that of non-related m&a.(4)M&a plays an intermediary role in the influence of managers' overconfidence on enterprise performance.