The Research On The Causes And Impacts Of M&A Premium For Listed Companies In China

In recent years,the volume and amount of deals in Chinese Mergers and Acquisitions(M&A)market has been high.According to Chinaventure,the volume of deals is 11969,9436 and 8096,and the amount of deals is $799.3 billion,$598.0billion and $537.0 billion from the year 2015 to 2017.The date from Flush Database shows that among the announcements of M&A from both Shanghai and Shenzhen stock markets during 2016,there are nearly 70% of the M&A cases' premium rate is above 50%,and almost 10% is above 1000%.The study on the influencing factors can be helpful for finding problems and provide guidance for the pricing of the M&A deals in the future.Both enterprises' and transactions' characteristics can affected the premium level of M&A transactions.Based on the existing theories and research results,the thesis uses 762 M&A events from 2015 to 2018 as the samples to study the impact that the influencing factors have on the premium level.The empirical findings show that there is no significant relationship between the share transfer ratio and the premium level under the regression analysis of the full sample.However,the two are significantly correlated in the related party transactions,which shows that more attention needs to be paid in related transactions.The premium level is significantly lower in the related party transactions according to the descriptive statistical analysis and regression analysis.Besides,there exists a significantly negative relationship between the cash payment ratio and the premium level,indicating that increasing the proportion of cash payments can inhibit the premium level to some degree.The premium level of one-time payment M&A transactions is significantly lower compared to that of successive payments transactions.What's more,the concentrated ownership can give the company more bargaining power.In addition,the thesis evaluates and analyzes the economic consequences of the high level of good will,which is the result of the high premium level of M&A transactions.The contents of the analysis include the causes,scale and the distribution of the goodwill.The results show that the scale of goodwill is currently at a high level,which has a high potential impact on business performance.Therefore,the key content of the next steps of business operators and regulatory agencies are to control and supervise the scale of goodwill as well as the goodwill impairments.At last,some advice is given which provides reference for a sound and orderly development of domestic M&A market.