| With the development of China's Internet technology,Internet applications have gradually penetrated into various industries,and the Internet has become an indispensable tool for the normal operation of various enterprises and institutions.In recent years,the number of Internet users and websites has grown rapidly,the level of user's demand has increased,and market demand has increased rapidly.The government also encourages the development of the Internet industry and creates a good policy environment and greater development space for the Internet industry.Under the influence of such strong market demand and favorable policies,more and more enterprises have begun to participate in the competition of the Internet industry,which has intensified the fierce competition in the Internet industry.When facing the living space of highly competitive enterprises is gradually shrinking and the threats from inside and outside are increasing,mergers and acquisitions become an effective way for these enterprises to reduce vicious competition among enterprises and improve their own benefits.Moreover,these companies enhance and expand their market voice and scale through the joint approach to enhance customer gravity,risk prevention and profitability.The current Internet mergers and acquisitions not only break the geographical and industry restrictions,but also enable former competitors to complete mergers and acquisitions.After the initial blind expansion and vicious competition,the Internet market has gradually returned to rationality,and the entire industry has maintained a healthy development through mergers and acquisitions and the benign development of the entire industry was achieved through mergers and acquisitions.From the data of M&A between industries,the proportion of M&A in the Internet industry accounts for a large proportion of China's entire M&A market.However,from the perspective of the effect of mergers and acquisitions,the M&A performance of various companies in the Internet industry is not the same.Generally speaking,mergers and acquisitions are the strategic investment behaviors made by management after the balance between personal interests and corporate values,and the success or failure of mergers and acquisitions is directly related to the motivation of management to make decisions.Managers will choose some high-risk and highly attractive projects under the motivation of interest,but this choice usually ignores and violates the principle of maximizing shareholders' interests.Among them,the issue of principal-agent and information asymmetry is the important reason for the conflicts between management and shareholders.Based on the literature review,this paper believes that the optimized equity structure and effective internal control will make efforts on solving the principal-agent problem between managers and shareholders,and reduce agent costs.Effective internal control can ensure that financial information is fully and timely disclosed,reduce information asymmetry and alleviate problems between shareholders and creditors.It can reduce the impact of operational and financial risks in the process of mergers and acquisitions.Therefore,the optimized shareholding structure and perfect internal control play an important role in improving the M&A performance of listed companies in the Internet industry.In this paper,349 samples were selected from listed companies in the Internet industry that had merged in Shanghai and Shenzhen Stock Exchanges from 2011 to 2015.The M&A performance is selected as the dependent variable,the equity structure including the two indicators of shareholding concentration and management shareholding ratio is selected as the independent variable,and the internal control quality is selected as the intermediate variable.Using Excel for data collation,Stata performs descriptive statistical analysis,correlation analysis,multiple regression analysis,and mediation effects testing.Through empirical analysis,the following conclusions are drawn:(1)there is a significant positive correlation between ownership structure and M&A performance.Among them,shareholding concentration and management shareholding ratio are positively correlated with M&A performance.The higher the shareholding concentration and the higher the shareholding ratio of management,the higher the M&A performance of listed companies in the Internet industry;(2)there is a significant positive correlation between equity structure and internal control quality.Shareholding concentration and management shareholding ratio are separately positive to internal control quality,that is,the strengthening of shareholding concentration and the increase of management shareholding ratio are conducive to the improvement of internal control quality;(3)the quality of internal control and M&A performance is significantly positively correlated.When the internal control quality of the enterprise is good,the M&A performance of the enterprise is better,because the internal control of the enterprise can effectively prevent risks in the M&A process,enhance information transparency,make the decision of M&A more rational and the process more standardized in order to improve M&A performance;(4)Internal control quality has a partial mediating effect between equity structure and M&A performance.The impact of equity structure on M&A performance can be attributed to M&A performance through internal control quality.In general,this paper focuses on the listed companies in the Internet industry,and the research scope is targeted.The research results may contribute to the refinement of relevant research in the field of M&A performance and the improvement of M&A performance for listed companies in the Internet industry.At the same time,the research on the mediating effect of internal control quality between equity structure and M&A performance makes the relationship between the three parties more fully reflected,which has played a certain role in the existing research. |
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