Research On The Influence Of Information Asymmetry On The Relationship Between Managers' Overconfidence And M & A Performance

In the latest data released by Thomson Reuters,global M&A projects totaled more than $3 trillion in transactions for the fourth consecutive year from 2014 to 2017,and reached $3.5 trillion in 2017.Chinese companies have also been very active in overseas mergers and acquisitions.In 2018,China's M&A transactions totaled more than US$140 billion,and the transaction amount ranked second among overseas mergers and acquisitions over the years.There are also many activities related to mergers and acquisitions in domestic enterprises.The reason why there are so many mergers and acquisitions is that many companies have placed their economic benefits on corporate M&A activities,expecting synergies.However,related research The report shows that the current results of domestic M&A performance are not good.Most of the M&A activities did not increase the wealth of the M&A company,and even damaged the shareholder value of the M&A company.The research on the relevant theory of the manager did not make a convincing explanation for these issues.So in recent years,scholars have started from the perspective of behavioral finance,starting from the prevailing psychological phenomenon that people prevail,to study whether the overconfidence of corporate managers is related to the benefits of mergers and acquisitions initiated by enterprises.What kind of relationship is there.First of all,the article first introduces the basic theories such as overconfidence theory,M&A performance,information asymmetry and M&A motivation theory.Then,it analyzes the relationship between enterprise managers' overconfidence and M&A performance and introduces them.The variable of information asymmetry,and then quantitatively study the relationship between the two.This paper also selects a specific data as an example of analysis,which is the data of M&A activities conducted by listed companies in Shanghai and Shenzhen A shares from 2011 to 2016,and the first year earnings per share after the merger is regarded as evaluating the M&A performance of enterprises.The indicator uses the manager's salary ratio as an evaluation index of overconfidence.The factor analysis method is used to analyze the following five indicators that affect information asymmetry.These five indicators are MBR,DEPA,PPVR,and RACTCE.And DER.From this,we find out a single or several common factors that do not have a relationship with each other,and then effectively combine these factors to represent the information disequilibrium of the enterprise.After the regression analysis of the initial sample,it is concluded that there is a relationship between the manager's overconfidence and the performance of the M&A,and the relationship between the two is negatively related,that is,the manager's overconfidence will lead to the merger and acquisition of the enterprise.The benefits are low;then,according to the quantitative information of information asymmetry,the data samples are divided into two groups,one is a highly symmetric group,and theother is a low-symmetric group,and then regression analysis is performed separately.The analysis results show that the impact of corporate managers' overconfidence on the performance of corporate mergers and acquisitions will change with the information asymmetry.The higher the degree of information asymmetry,the negative correlation between the two The more remarkable.