The Effect Of The Terms Of The VAM On The Merger Premium

Enterprise merger and reorganization is a shortcut for enterprise development and growth.The current international enterprise giants almost stand on the top of the world enterprises through continuous mergers and acquisitions.In merger and acquisition activities,the main and merging enterprises are often negatively affected by information asymmetry when valuing the target company and determining the consideration to be paid accordingly.They tend to overestimate the value of the target company and pay too high consideration,thus causing their own losses.In order to solve this problem,more and more enterprises in the merger and acquisition of the introduction of bet agreement,in order to reduce the negative impact of information asymmetry.However,domestic and foreign scholars do not have much research on whether performance versus bet agreements can effectively reduce the negative impact of information asymmetry,so as to avoid the losses caused by high premium paid by the buyer.Therefore,the research in this paper has effectively enriched the research field on the relationship between performance versus bet agreements and merger and acquisition premium.In this paper,the research on the actual situation of the m&a market in China,through literature review,respectively summarized predecessors to bet against the agreement and acquisition premium related research,summarizes the bet agreement and relevant theories of m&a premium,and analyzes the bet agreement the use of the status quo,then on the basis of theoretical analysis is put forward in this paper,the performance of the relationship between the bet on agreement and the terms of m&a premium assumption,selected from 2013 to 2017,the Shanghai and shenzhen a-share listed company merger and acquisition event as sample,the performance impact on m&a premium bet on agreement.The research results of this paper show that if the performance of the transaction includes the agreement,it will increase the merger premium.The positive effect of performance versus bet agreement on m&a premium is mainly realized by solving information asymmetry,signal release,option function and incentive effect.Moreover,from the perspective of the specific terms of the counterparty agreement,the merger premium is higher when the counterparty agreement contains the installment payment clause.The higher the proportion of deferred payment depending on the completion of performance,the higher the merger premium;The performance commitment period also has a significant positive impact on the m&a premium.The research results of this paper have practical significance for guiding the use of the contract and the setting of the specific terms in practice.