A Research on the Effect of Equity Structure on Mergers and Acquisition Decision

摘要

This paper made a study on the effect of the two dimensions of equity structure, namely, equity proportion and equity quality, on Mergers and Acquisition decision by doing case study of the listed companies in our country during 2001-2009. The results indicate that: (1) companies with high equity concentration tend to select relevant M&A, while companies with low equity concentration tend to choose diversified M&A; (2) state-owned listed companies tend to choose relevant M&A, while private companies tend to choose conglomerate Mergers; (3) state-owned shareholding companies with high equity concentration tend to choose relevant M&A, while private companies with decentralized equity tend to choose conglomerate Mergers. These evidences will provide new ideas for the improvement of the equity structure management in China and the stock supervisory board, and enrich the documents on M&A and ownership management.