Can Large Shareholder And Equity Investment Institutions Participate In Matching Financing To Improve The Company's M&A Performance?

With the advancement of China's economic transformation and the continuous improvement of the financial market,more and more enterprises have realized resource allocation and structural adjustment through mergers and acquisitions.In August 2011,the China Securities Regulatory Commission issued a "Decision on Revising the Relevant Regulations on Major Asset Restructuring and Supporting Financing of Listed Companies" to support the simultaneous operation of major asset restructuring and supporting financing of listed companies.It clearly stipulates that listed companies can issue shares to purchase assets and raise some supporting funds.In M&A transactions,the company's shareholder background is critical to achieving positive M&A performance.From the inside of the company,shareholders,as the owners of the company,have the final decision-making power on the company's mergers and acquisitions,and the shareholding ratio and identity of the shareholders directly affect the quantity and quality of the company's mergers and acquisitions.In addition,the rapidly evolving M&A market also shows many different characteristics from the past one.One of the striking features is that equity investment institutions are increasingly active in the M&A market.As a professional investment institution,equity investment institutions have the certification effect.Generally,the companies they invest in are more high-quality and profitable.At the same time,equity institutions play an active shareholder role in listed companies,which helps improve M&A performance.With the development of China's equity investment market and the rapid increase of equity institutions,the phenomenon that equity investment institutions holding shares is increasing,and many M&A events are related to it.Under this background,it is a practical research question about how the large shareholders and equity investment institutions that are the owners and important participants of the company's control participate in supporting financing to the merger and acquisition performance of listed companies.Therefore,this article analyzes its impact on M&A performance from the point of large shareholders and equity institutions,which has important practical significance for improving corporate governance structure and improving M&A performanceBased on relevant domestic and foreign research,this paper expounds the relevant theories of major shareholders,equity investment institutions and M&A performance.And on the basis of theoretical support,this paper analyzes the mechanism of major shareholders and equity investment institutions' effect on listed companies' M&A performance and assumptions are made for the empirical research.In the empirical portion,506 M&A events conducted by China's A-share listed companies through matching financing from 2013 to 2018 are selected as the research sample,using earnings per share as the performance evaluation index,and using multiple regression.After analysis,it was concluded that:(1)M&A performance of large shareholders participating in supporting financing is relatively low;(2)Equity investment institutions participating in supporting financing have no significant impact on M&A performance;(3)Stronger control rights can lead to higher M&A Performance.Based on the above conclusions,this article puts forward the following suggestions:(1)Optimize the shareholding structure reasonably,keep the company's ownership concentrated relatively,have a good balance between shareholders,and maximize the power of shareholders;(2)The equity investment supervision department should strengthen supervision,standardize the equity investment market.and guide equity investment institutions to play their active governance role;(3)Strengthen internal control and external supervision of management to achieve better synergies in mergers and acquisitions.