Research On The Influence Of M&A Payment Methods On M&A Performance Of Manufacturing Enterprises In Different Life Cycles

The manufacturing industry has always occupied an important position in the economic development of China.For the better development of enterprises,and to promote the upgrading and transformation of China’s overall manufacturing industry and enhance the competitiveness of enterprises in the market,the economic means of mergers and acquisitions has gained more and more attention.The choice of scientific and reasonable payment form is very important for the effect of M&A,and when the enterprise is in different development stages,the financial characteristics and operating characteristics also have certain differences,and will have a relevant effect on the payment form.Therefore,this thesis uses signaling theory,taxation theory,and corporate control theory,combined with corporate life cycle theory to discuss the different effects that M&A payment forms have on their performance,which has far-reaching implications for the development of the manufacturing industry.This thesis takes the data of China’s manufacturing companies in the four years from 2016 to 2019 as the research data,and examines the impact of M&A payment methods on acquisition performance under each life cycle from the life cycle theory,combined with the relevant studies of previous academics.We also propose a mechanistic path for M&A payment methods to influence corporate performance:among the M&A payment methods,cash payment will increase corporate liabilities,and equity payment will increase corporate equity and change the equity structure,which will have an impact on corporate capital structure.The instability of capital structure and excessive debt ratio will limit the financing ability of the firm,which will affect the R&D investment of the firm.R&D investment can improve the product quality and innovation ability,productivity,etc.,and promote the sales revenue and profitability of enterprises.First,by referring to the company life cycle taxonomy of previous researchers,the different stages to which the enterprises belong are classified.Then,the financial performance evaluation system of manufacturing enterprises was created from different 3 levels of financial performance evaluation,and the corresponding performance score equation was obtained by factor analysis method,and the final scores were obtained by substituting different enterprises’ performance data in different years.Subsequently,a multiple regression model was established to analyze the data in each life cycle based on the change in the performance of the company after the merger as the explanatory variable,the payment method used in the merger as the explanatory variable,and the equity structure of the company as the control variable.Finally,a mediating effect model was developed based on the mediating variable corporate R&D investment.The study finally found that cash payment can better promote the performance of mergers and acquisitions of companies compared to stock payment and other payment methods;Growth stage enterprises have better payment methods compared to stock payment methods,while mature stage enterprises have better payment methods compared to other payment methods.For declining stage enterprises,other payment methods have little difference compared to stock payment methods.The method of payment for M&A has an effect on both M&A performance and corporate R&D investment,with corporate R&D investment playing a partially mediating role in the other two.Accordingly,this thesis proposes policy recommendations that firms should reasonably choose M&A payment methods before M&A,expand M&A cash payment channels and increase corporate R&D investment,and make full use of overseas capital markets to complete corporate M&A consideration payment.