Research on the Financial Synergies of Corporations’ Merger and Acquisition
|School||Southwest University of Political Science|
|Keywords||merger financial synergy effect capital cost capital gains tax burden|
Enterprise merger is the modern enterprise through the capital market to externalexpansion and contraction or their own internal transformation of the activity, the assetsreorganization of a kind of important ways.Appearing financial synergy effect is one of themain motivations of the merger, but it is also the key to measure whether it is a successfulmerger. Therefore, it is very important to study the enterprise merger of financial synergyeffect.In this paper, the enterprise merger of financial performance theory were review. And, onthis basis, analyzing the mechanism of production of the financial synergy effect, influencefactors and implementation,etc.Theory analysis shows that enterprise merger of financialsynergy effect including the cost of capital coordination effect, return on capital coordinationeffect and tax burden synergy effect.The three effects by lowering the cost of capital,improving return on capital and reasonable tax avoidance to improve financial performancerespectively.This paper empirically Chinese listed company2009-2010years of experiencedata,as a delta loan interest rate, net assets yield growth and income tax rate for the reducedto the dependent variable,The total assets, total sales, share ratio of the largest shareholder,business growth and the asset-liability ratio for the independent variable to structure multipleregression model.And so as to explore enterprise merger generated capital cost coordinationeffect, return on capital and tax burden synergy degree of coordination effect.This paper mainconclusions are:(1)The size of the coordination effect of capital after M＆A has a negative correlationwith the total assets of total sales, the company growth, and has a positively correlated withshare ratio of the largest shareholder, the asset-liability ratio.(2)The size of return on capital synergy effect after M＆A has a positively correlationwith the total assets of total sales, the company growth, and has a positively correlated withthe asset-liability ratio were negative correlated.The acquisition in reality due to the interestsof the driver after the enterprise is merged,The first big shareholders often increase theirshareholding because of power, income, social prestige, etc.Therefore, the share ratio of thelargest shareholder and coordination effect return on capital are not negative correlation(3)The size of tax burden coordination effect after M＆A has a negative correlation with the total assets of total sales, the company growth, and has a positively correlated with shareratio of the largest shareholder, the asset-liability ratio.In reality, because of existing themotivation of merger speculation,Therefore, the total sales of the tax burden and synergisticeffects are not negative correlation.(4)Since there are existing in the motivation and merger speculation benefit drive, andother factors,Make the company growth, the share ratio of the largest shareholder and sales Ina time of financial synergy effect of weakly.On the basis of empirical,Finally, this paper respectively from the Angle of enterprisesand government put forward the relevant policy suggestions,to improve the enterprise mergerfinancial synergy effect.