Stock Price Informativeness On The Sensitivity Of Merger Investments To Q

With the rapid development of economic globalization and the increasingly fierce competition in the financial market,corporate M&A activity has become an important business activity for the company's rapid growth and diversified development in the future.Corporate mergers and acquisitions,as an important way to promote equity optimization and optimize the allocation of resources,make it a necessary means and measure to maintain market competitiveness.In recent years,many listed companies in China have participated in mergers and acquisitions between companies in order to rapidly expand and develop.Mergers and acquisitions investments have their own unique advantages,and an investment boom has rapidly emerged,especially from 2013 to 2015,A shares usher in a bull market.At the same time also ushered in a massive amount of M&A transactions.Then,how do corporate investors obtain effective information from the stock market and can this information guide their investment decisions?One of the basic functions of the securities market is to gather and transfer information and reflect it in the change of stock price through information processing.The rational allocation of capital can be achieved by guiding the flow of capital in the direction of maximizing the value of stock capital.This is also the inherent requirement for the effective operation of the market.Studying the traditional effective market theory can find that the effective allocation of capital is often equated with effective information,but ignores that the effective allocation of resources is guided by price information.On this basis,the content of stock price information is derived.Reasonable capital allocation depends on investment decisions.Mergers and acquisitions investment is a new investment method.This article empirically examines the content of stock price information to actively improve the efficiency of capital allocation in merger and acquisition market enterprises.enhancement.This article takes a list of listed companies that have completed mergers and acquisitions between 2012 and 2017 and has a total transaction amount of more than 100,000 million yuan.Tobin Q represents the company's future growth value,and uses stock price non-synchronization to measure stock price information content.There is a positive correlation between the research on stock price information content and the sensitivity of M&A investment-Tobin Q,that is,whether company managers learn new information from the market when they make M&A decisions.Whether the private information in these stock prices is efficient for corporate capital allocation Has a promoting effect.The results of the study indicate that the stock price information content has a significant positive effect on M&A investment-Tobin Q sensitivities,that is,private information in the share price plays a positive role in the M&A decision of the company.Then,after conducting a robustness test,the stock price information was sorted into five parts from low to high.Using quantile regression to analyze the results,it was found that the stock price information content was generally in line with the assumption,and as the stock price information content increased,The greater the value of Tobin's Q,the greater the investment in mergers and acquisitions,and the positive correlation between M&A investment and Q value.Then from the micro level,consider the impact of stock price information content on the efficiency of capital allocation in the M&A market.According to the size,type,and industry of the listed companies,the sample companies will be divided into three categories:main board,small and medium board,and GEM listed company.Assuming that the SME board and the GEM are not in line with expectations,the reason for this result may be that the listed companies of the SME board and the GEM board are all small and medium-sized enterprises and may face financing constraints.Further,from the aspect of financing constraints,mergers and acquisitions is an act of relying mainly on external financing methods to conduct investment.When the company is faced with financing constraints,even if the stock price includes external investors' private information on good investment prospects Corporate managers may miss investment opportunities due to lack of financing.This article measures the financing constraints from the aspects of company attributes and company size.On the one hand,from the perspective of company attributes,whether the company's substantive controller is state-owned or non-state-owned,the state-owned listed companies have natural advantages in financing,and the non-state-owned enterprises have a comparative existence.Disadvantages face more serious financing constraints;on the other hand,the larger the company size,the more stable the cash flow it possesses,the easier it is to obtain external financing loans,and the smaller financing constraints.The empirical results show that the financing constraints will indeed restrict the guiding effect of stock price information on M&A investment.