Research On The Influence Of Accounting Conservatism On M&A Decision-making Of Listed Companies In China

As an important feature of high-quality accounting information,accounting conservatism will inevitably affect the operating efficiency of the company.As an important principle of accounting recognition,it has a profound impact on the behavior of enterprises,and it plays an active role in easing agent conflicts,reducing debt costs,and promoting information communication.M&A is an important economic activity of a company and it is related to the overall development of the company's future scale.In China's capital market,companies tend to rush toward company mergers and acquisitions,but the success rate is often very low.Based on the classification of the influencing factors of M&A efficiency,the current stage of research mainly divides it into the decision before M&A and the integration after M&A.We believe that the prioritization of efficiency helps to reduce the performance of post-consolidation integration.Therefore,around the impact of M&A decision-making on what factors are affected,relevant research is done from the perspective of corporate governance mechanism design,managerial overconfidence,and the nature of property rights of M&A companies.Out of the discussion.In the tide of the global information age,information is an important factor in decision-making.Among them,accounting information is the most direct performance of the company's overall operating conditions.Therefore,under this background,what kind of influence will the accounting conservatism have on the M&A decision of the company?This paper studies the influence of accounting conservatism on the M&A decision of listed companies in China.This article first elaborates the research background,significance,and content framework of the dissertation.Then it reviews the related literature and analyzes the related theories of accounting conservatism and mergers and acquisitions,including:the theory of merger and acquisition agents,principal-agent theory,contract theory,and information.Asymmetry theory.Then we analyze the overall situation of China's listed company mergers and acquisitions through charts,and elaborate the problems and causes of the accounting mergers and acquisitions of listed companies in China.On the basis of this,this paper analyzes the impact of accounting conservatism on M&As of listed companies from the theoretical perspective.Based on the theoretical analysis,this paper proposes the hypothesis that accounting conservatism is negatively correlated with M&A possibility and M&A premium of listed companies in China.When M&A companies are non-state-owned enterprises,they assume an enhanced role in the relationship between accounting conservatism,M&A possibility and M&A premium.Finally,the above four hypotheses are empirically tested tolist all A-shares in Shanghai and Shenzhen stock markets from 2009 to 2016.As a sample of the study,the company uses K&W's CSCORE measurement to explain the accounting conservatism of variables,and the explanatory variable's M&A decision adopts whether there are mergers and acquisitions and merger premiums,and whether they use mergers and acquisitions in the fiscal year and the premium rate for the company to reach the merger and acquisition payment.Standards,an empirical model of the influence of accounting conservatism on the merger and acquisition decisions of listed companies was constructed,and the relationship between the two was examined.On this basis,the SOE is used as a regulated variable to describe the influence degree of accounting conservatism on M&A decision under different property rights.The article research results are as follows:(1)In terms of the influence of accounting conservatism on the possibility of mergers and acquisitions of listed companies,this article is based on the full sample data of China's listed companies from 2009 to 2016,and obtained a total of 13278 observations.Through a large sample of logistic regression analysis,we found that accounting conservatism and M&A possibility Negative correlation,the higher the degree of corporate accounting stability,the more cautious the company's mergers and acquisitions,the possibility of mergers and acquisitions is reduced.After adding the nature of property rights as a moderating variable,it was found that when the nature of property rights is non-state-owned enterprises,the negative correlation between accounting conservatism and the possibility of mergers and acquisitions is strengthened.(2)In terms of the impact of accounting conservatism on the M&A premiums of listed companies,this article is based on the sample data of China's listed company M&A events from 2009 to 2016,and obtained a total of 1442 observations.Through multiple linear regression analysis,the results show that the accounting conservatism and M&A premium are negative.Relevant,the higher the degree of accounting conservatism,the lower the degree of merger and acquisition premium paid.After adding the nature of property rights as a moderating variable,it was found that when the nature of property rights is non-state-owned,accounting conservatism has a stronger inhibitory effect on M&A premiums.Through the review of relevant literature and normative analysis,the following conclusions can be drawn:Enterprises with higher accounting conservatism are more reluctant to initiate mergers and acquisitions,and they hope to trade at lower transaction prices.Such results are even more pronounced in non-state-owned enterprises.In view of the research conclusions of this paper,this paper puts forward related suggestions to improve the enterprise accounting conservatism level and optimize the enterprise merger and acquisition decision-making system.