Research On The Relationship Between Payment Methods And M & A Performance

The development of any economy and a listed company will go through the stages of initiation,growth,maturity and decline.In today’s rapid iterative development,when a listed company has developed to a certain extent,it is extremely difficult for them to develop by the internal accumulation development model.If a listed company wants to complete a large area expansion in a short time,it can only complete through external expansion development model.M&A is the best way for listed companies to achieve rapid development through external expansion.An M&A transaction activity should go through the stages of pre-M&A,M&A and post-M&A,involving a series of steps and multiple aspects.The choice of payment method is particularly important.At present,the relevant research in this field mainly involves the research on the relationship between static payment method and M&A performance,while there are few studies on the relationship between dynamic payment method and M&A performance.It is of great significance to divide the dynamic and static payment methods and then study the relationship between the payment methods and the performance of M&A.With the continuous innovation and enrichment of the payment method of M&A,the payment of Valuation Adjustment Mechanism has quietly stepped on the stage of the payment method of M&A.It is particularly necessary to explore and analyze the relationship between the mode of payment and the performance of M&A in the new historical environment.In order to compare and analyze the differences of different payment M&A performance among different companies,it is necessary to measure and evaluate the relative efficiency of individual M&A performance.The data envelopment analysis(DEA)method is superior to other multi-index methods in measuring and evaluating the relative efficiency of different individuals.Therefore,this paper introduces data envelopment analysis(DEA)method into the comparative study of M&A payment method and performance.Firstly,data envelopment analysis(DEA)is applied to calculate the relative M&A performance values of different sample companies.Then,through the SPSS22,the relative efficiency values of the M&A performance of the sample companies were compared and analyzed to test the hypothesis proposed in the paper according to whether the Valuation Adjustment Mechanism payment--dynamic payment and different static payment methods were adopted.In this way,the influence of different payment methods on corporate M&A performance can be analyzed more comprehensively and objectively.The research found that:(1)M&A appeared between Shanghai and Shenzhen a-share listed companies and new third board companies,non-listed companies and regional equity trading center companies can indeed improve corporate performance;(2)The use of Valuation Adjustment Mechanism to pay the performance of M&A is significantly better than the non-VAM to pay the M&A;(3)In other conditions unchanged,the company using cash to pay its M&A performance is better than the company does not take any cash to pay;In the payment method,the M&A performance without the participation of shareholding payment is obviously better than that with the participation of shareholding payment.In the short term,the "cash & stock" hybrid payment is significantly higher than other payment methods.However,in the longer term,this advantage gradually decreases and eventually disappears,and is significantly lower than the M&A performance under cash payment.(4)In state-owned enterprises,the non-Valuation Adjustment Mechanism to pay the M&A performance is better than the Valuation Adjustment Mechanism to pay the M&A.(5)Compared with state-owned enterprises,the performance of M&A of non-state-owned enterprises is better.At the same time,the following Suggestions are given in the light of the research conclusions:(1)Due to the existence of information asymmetry,M&A activities are full of risks,the use of Valuation Adjustment Mechanism can effectively alleviate the information asymmetry,disperse the risk of M&A and improve the performance of M&A;In order to protect their own interests,disperse the risks related to M&A,and improve the performance of M&A,it is necessary to adopt the payment method of Valuation Adjustment Mechanism with the function of supervision and incentive.(2)Valuation Adjustment Mechanism is not all gold,choose the target enterprise,to ensure the quality of M&A,appropriate use of Valuation Adjustment Mechanism,can better reduce the risk of M&A,improve the success rate of M&A.(3)The payment method of the VAM is one of many ways of payment in the M&A,in the process of the M&A should make full use of the combination of the Valuation Adjustment Mechanism and other payment methods to pay.(4)Based on Chinese current capital market and the background of the macro-economic environment,the proposed taking M&A with private,public and foreign nature of the enterprise,arriving on completement of the enterprise strategy transformation and sublimation.