Authors:
Zaixin Ji
and
Xuedong Chen
Affiliation:
School of Economics and Management, Beijing Jiaotong University, No.3, Shangyuancun, Haidian District, China
Keyword(s):
Private Equity Investment, M & a and Restructuring, M & a Performance, M & a Payment Method.
Abstract:
It has become easy and common to introduce private equity investment when Chinese listed companies conduct mergers and acquisitions. Private equity investment can help listed companies better understand and apply mergers and acquisitions. This paper selects 387 M\&A transactions of all listed companies on China’s SME board and GEM in 2017-2021 as the big data samples for empirical research. This research uses the ordinal logistic regression model as the main analysis tool, using CITC analysis algorithm α The coefficient algorithm was used to test the reliability and validity of the measurement scale, and the joint significance test was used to verify the effect of each variable. The study found that when companies introduce private equity investment institutions as shareholders, they will have a positive response to the performance of mergers and acquisitions. At the same time, the increase in the shareholding ratio of private equity investment in mergers and acquisitions also has a
positive response to the performance of mergers and acquisitions. When private equity accounts for a large proportion in the acquirer’s enterprises, the response of M\&A performance is positive, which will promote the improvement of the company’s excess return rate. When private equity investment is introduced into the acquirer company, the priority of payment methods is mixed payment, cash payment and stock payment.
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