Analysis Of Corporate Mergers And Acquisitions Performance From The Perspective Of Social Capita

As one of the effective ways for enterprises to rapidly develop and expand their power,mergers and acquisitions are gradually being adopted by more and more enterprises.In the past,academic papers on mergers and acquisitions research mostly focused on formal institutional aspects,such as transaction characteristics,product lifecycle,etc.There is not much research on corporate mergers and acquisitions from an informal institutional perspective such as social capital.Even though more scholars have begun to pay attention to the impact of social capital on corporate economic behavior in recent years,most of them are empirical analysis,and case studies are often scarce.Every enterprise is in the big network of social relations,and its economic behavior will inevitably be affected by various social capital relations such as trust relations,human relations,cooperation relations,etc.Studying the merger and acquisition activities of enterprises from the perspective of corporate social capital will help us to have a more complete understanding of the business strategy of enterprises,and also cause other enterprises to attach importance to social capital accumulation.The paper adopts a single case study method and compares empirical analysis of multiple case studies,which can make the discussion of case content more extensive and specific.As a model of successful mergers and acquisitions,studying Xiwang Food’s M&A experience may provide some reference for relevant enterprises.Therefore,based on the information asymmetry theory,resource dependence theory and market power theory,and taking the Kerr event of Xiwang Food as a research case,this paper explores the way in which corporate social capital is embedded in M&A behavior,which plays a role in the M&A process,and thus has a certain impact on the performance of M&A.This article takes the case company as the starting point to analyze the social capital obtained by Xiwang Food from its horizontal and vertical stakeholders,exploring how it is embedded in the company’s M&A behavior and has an impact on it,thereby affecting the company’s M&A performance.The main evaluation methods of M&A performance in this paper are: short-term performance evaluation based on the event study and long-term comprehensive performance evaluation based on the motivation of M&A.Through research,this article concludes that in China,the social capital of enterprises will have an impact on mergers and acquisitions,mainly manifested as:firstly,the government,which is vertically related to enterprises,acts as a guide and coordinator in enterprise mergers and acquisitions activities.The social capital between enterprises and the government can provide policy guidance for mergers and acquisitions,and the government can also use its own political resources to give enterprises more information advantages,Reduce the problem of information masking caused by information asymmetry,coordinate approval departments,accelerate approval speed,and provide financial support;The second is banks and investment institutions that are horizontally related to the enterprise.The social capital between them can provide convenience for the company’s financing,enhance the company’s financing ability,and provide financial support for the implementation of mergers and acquisitions.Corporate social capital,as a heterogeneous resource of enterprises,can provide them with more information advantages in the process of mergers and acquisitions,thereby having a positive impact on the final M&A performance of enterprises.In the short term,corporate social capital can provide policy support,financial support,and good merger expectations for mergers and acquisitions,leading to an increase in the company’s stock price and generating a positive cumulative excess return rate during the window period;In the long run,reducing information obscuration,reducing the cost of information acquisition,thereby reducing the cost of merger and acquisition decision-making,and providing financing support for enterprise mergers and acquisitions can also positively affect the long-term merger and acquisition performance of enterprises.