The Influence Of Network Of Directors On M&A Performance Of Listed Companies

M&A activity as the main way to achieve optimal allocation of resources is an important means for the company to achieve rapid expansion and leapfrog development.In recent years,with the transformation and upgrading of the global economy and the continuous adjustment of the industrial structure,mergers and acquisitions activities have shown a trend of rapid development.It has always been the concern of the government,company management,and scholars as to how to implement M&A activities reasonably and effectively,and to enhance M&A performance.important topic.Based on the information asymmetry theory,this paper studies from the perspective of social network.Under the circumstances that the formal system of merger and acquisition activities is not perfect,how does the director's network supplement the formal system? How does it affect the company's M&A performance?The paper first reviews the research literature on M&A performance and director networks,and outlines the theoretical basis for such studies as information asymmetry theory,social capital theory,and social network theory.Second,it uses basic theory to analyze the size,position,and structure of the network of directors.The different mechanisms of M&A performance include adding three regulatory factors: jurisdiction,property rights,and board overconfidence to examine the degree of influence of the director network on M&A performance under different circumstances.In the empirical analysis section,the paper selected 3,180 M&A events of China's Shanghai-Shenzhen A-share listed companies from 2010 to 2015 as research samples,used the Pajek social network analysis method to measure the relevant indicators of the director network,and tested the directors through multiple regression analysis.The impact of network size,location and structure on M&A performance.The results of the study show that:(1)Directors' bonds are common in China's listed companies,and the size of the network of directors(points)has a significant positive correlation with M&A performance.(2)The position of the director network(near centrality and intermediary centrality)has a significant correlation with M&A performance.The closer to the network center,the higher the M&A performance of the M&A party.(3)The structure of the director network(degree of constraint)has a significant correlation with M&A performance.The lower the degree of restraint,the larger the number of structural holes,and the better M&A performance of M&A parties.(4)When the merger and acquisition company and the target company are in the same province,the director network has a more positive effect on the performance of mergers and acquisitions.(5)In non-stateowned companies,the director network has a more positive effect on M&A performance.(6)When the board members do not have psychological characteristics such as overconfidence,the director network has a more positive effect on M&A performance.Finally,based on the research conclusions,the paper puts forward some valuable research thoughts and practical enlightenments for the construction of the company's director network,in the hope of providing practical guidance for the improvement of corporate M&A performance.