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Research on the Correlation between Payment Methods of M&A and M&A Performance of Listed Company

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Listed:
  • Yiping Liu
  • Danqing Ma

Abstract

As mergers and acquisitions of listed companies have become increasingly active, payment methods of M&A have also increasingly diversified. This article takes M&A cases of listed companies in china capital market as samples during 2009 to 2013. Taking financial indexes analysis and factor analysis, we can construct M&A performance comprehensive score model, by which we can calculate the score. Then, build multiple regression model to study the relation between the performance of M&A and payment methods of M&A. Studies indicate that M&A performance is stable by the cash payment method and the cash payment method has a small effect on the M&A performance; M&A performance improves obviously by the stock payment method and mixed payment is not conducive to the improvement of long-term performance; The stock payment method has a huge positive effect on the M&A performance, and the mixed payment is not beneficial to improve the M&A performance.

Suggested Citation

  • Yiping Liu & Danqing Ma, 2018. "Research on the Correlation between Payment Methods of M&A and M&A Performance of Listed Company," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 10(6), pages 90-96, June.
    • Handle: RePEc:ibn:ijefaa:v:10:y:2018:i:6:p:90-96
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    References listed on IDEAS

    as
    1. Di Giuli, Alberta, 2013. "The effect of stock misvaluation and investment opportunities on the method of payment in mergers," Journal of Corporate Finance, Elsevier, vol. 21(C), pages 196-215.
    2. Ismail, Ahmad & Krause, Andreas, 2010. "Determinants of the method of payment in mergers and acquisitions," The Quarterly Review of Economics and Finance, Elsevier, vol. 50(4), pages 471-484, November.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    payment method of M&A; performance of M&A; factor analysis; multiple regression analysis;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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