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On resources caused by M & a flow mechanism

Author: YuanXueYing GuoQin From: www.yourpaper.net Posted: 2010-06-07 18:18:11 Read:
[Keywords] M & resource flows of enterprise merger and
[Abstract] M & A is an effective way to business expansion and development, but also an important way to upgrade the optimization of resource allocation and industrial structure, enterprise M & A will cause the flow of resource elements.This paper reviews the relevant theories of M & A and enterprise resource theory, resources and classification of enterprises and on this basis to be defined.By comparing with the general resources elements flow breaking the law, further reveals the special mechanism of flow resources caused by M & A.
, research background and significance of
M & A is an effective way to business expansion and development, but also an important way to upgrade the optimization of resource allocation and industrial structure.Mergers and acquisitions will cause the resources in the enterprise asks flow, will also cause the flow of resources between regions, resources flow to change the region's resource endowments, promote the optimization and the development of regional economy and industrial structure, thus affecting the regional economic structure, and change the mode of economic growth, drive the development of regional economy.For M & A is the creation of wealth, a lot of research achievements at home and abroad, but no consistent conclusion.The existing research is mostly studied from the market, the corporate disclosure of external information, also have a few from the microcosmic angle of enterprise resource and environment research.Research on resource flow focuses on general resources flow rule and its influence on the economy, shows that mergers and acquisitions on the adjustment of industrial structure and regional economic growth.Although the number and scale of Chinese enterprise M & A is on the increase, but the new investment always holds the very great proportion in the total amount of investment, in 2003 is still as high as 90%.This index in 2000 after the global transnational investment of not more than 20%.This shows that through mergers and acquisitions, to avoid duplication, reduce competition and the waste of social resources, expand the scale of production and service, refinement of social division of labor, promote the progress of science and technology, and the enterprises play the competitive advantage of regional economy, to realize the transformation of economic structure adjustment and economic growth mode, in the real economy is still very difficult, on the other hand, it has a great potential.
With the development of economy, resource flow has become a very common phenomenon in today's society.Research on resource flows existing, mainly on the flow of resources in general theory based on economics and resources science, is also to explore the nature and mechanism of resource flows a few scholars from the angle of the general law of force, but its research mainly concentrated in the flow of resources.This paper attempts to analyze the flow of resources on the basis of exploring the special flow mechanism, resources caused by enterprise merger, as the formulation of economic policy and business investment investment strategy reference.
The definition of two, the related theory and concept of
(a) theory of M & A
The theory of M & A is one of the important subject of enterprise theory, economics and finance theory, with the development of economy, the enterprise of M & a theory has made considerable progress, become one of the most active fields in Western economics.The existing research on M & a theory of enterprise can be divided into research on M & A and M & a performance study.
The 1 M & a study.In real economic life, the reason of enterprise merger and acquisition is diverse and complex, only for a single reason why M & A is not common, most M & A with a variety of reasons, but also have different characteristics in different periods, natural reaction to the motive of M & A will is a comprehensive balance a multifactorial process.
(1) the efficiency theory.Efficiency theory based on the theory of new classical economics, believes that mergers and acquisitions help encourage managers to improve business performance and synergistic effect of some form of.Synergistic effect of generally include: collaborative effect, financial synergies and management.Efficiency theory is powerful in explaining the motivation of merger, but the merger motivation is originated in what sense the synergy and efficiency improvement, it is need further analysis.
(2) the information theory.Information theory is that all kinds of noise in the market environment makes the strong form of efficient market theory does not exist, in the information advantage of the enterprise or the internal one can take advantage of the insider information, through the acquisition of undervalued stocks, gain control of enterprise M & A.However, in the process of mergers and acquisitions, regardless of whether the success of mergers and acquisitions, the target enterprise stock price will rise, because the merger itself to the market shows that, the target enterprise shares are undervalued.
(3) the agent theory.Agency theory has two kinds of explanations to the enterprise merger and acquisition: the first is the merger can reduce agency costs; through internal organizational arrangements can mitigate agency problems in a certain extent, reduce the agency cost.The second is that the managers of the enterprise management, more concerned about their own interests, always hope that through mergers and acquisitions to expand the scale of enterprises to increase their income.It is assumed that the executive pay is a function of the size of the company, so has hoggish feature manager when companies merge, the objective is simply to expand the scale of enterprises to improve their remuneration.
(4) the free cash flow theory.Think of free cash flow theory, the use of free cash flow, a conflict of interest between shareholders and managers, if the enterprises do not have good investment opportunities, free cash flow will be distributed to the shareholders, contribute to excessive investment behavior inhibition managers.
(5) the market power theory.Market power theory believes that the enterprise market power from the expanding business scale, through mergers and acquisitions can get the target enterprise resource advantages, and realize low risk, low cost expansion purposes; can reduce competition, increase the control ability of the operating environment, improve market share.
(6) the overconfidence hypothesis.Roll (1986) is from the decision-making behavior of managers to explain the phenomenon of mergers and acquisitions, he thinks the management decision-making often stems from own arrogance and blind optimism, fully believe in yourself to the Target Corp's "error" valuation and estimation of the synergistic effect of "error".This hypothesis provides only a statement of M & A enterprise for our understanding of the phenomenon.
The 2 M & a performance study.Research on M & a performance is concentrated in two aspects of macro and micro performance effect of M & A.
(1) the macro effects of mergers and acquisitions.The macroscopic effect of mergers and acquisitions are mainly as follows: one is the monopoly effect of M & A; namely, M & A will lead to industry of complete or partial monopoly, restricting it to by anti-monopoly law.The second is the acquisition of industrial agglomeration effect; Target Corp are concentrated in certain industries, mergers and acquisitions industry agglomeration.The third is the resource allocation effect of merger and acquisition; acquisition mainly displays the expansion and contraction of two kinds of role in the economy, and cause the reconfiguration of existing assets.The fourth is the economic growth effect of M & A; Barron (1999) study that the United States of America in the nineteen seventies to 9O's economic development performance due to the United States of America was for mergers and acquisitions, mergers and acquisitions in a certain extent stimulated the Usa Inc's sense of innovation, laying the foundation for 9O's good momentum for development.In a survey of large transnational merger and acquisition, the development of cross-border mergers and acquisitions on the host country's economy can play a role in promoting.
(2) the enterprise M & a performance.Enterprise M & a performance has been the focus of academic attention to mergers and acquisitions, research on M & a performance mainly concentrated in the M & a performance evaluation method and M & a performance analysis of the factors of these two aspects.The M & a performance evaluation method mainly with event study method and accounting research method.On the factors of influence the performance of M & A is mainly from the following several aspects to study: one is the merger and acquisition performance; the second is related to the degree of mergers and acquisitions and mergers and acquisitions performance; the third is the growth of enterprise merger and acquisition performance; the fourth is the ownership structure and performance of M & M enterprises; in short, the domestic and foreign research factors on M & a performance evaluation method and its effects have not yet reached the same conclusion.Investigate its reason, differences in sample selection and research methods have led to the study of the different calibre, difference and selection of variables lead to different results.
(two) the enterprise resource theory
Enterprise resource theory is a new theory after industrial location theory in the field of enterprise management strategy developed.It advocates the enterprise competitive advantage mainly comes from the enterprise's own unique factors, rather than the industry choice and location.Enterprise resource theory main idea comes from Penrose (1959) growth theory, the enterprise Nelson and Winter (1982) economic evolution theory.After Wemerfelt (1984), Barney (1986, 1991) and Peteraf (1993)'s development, has now become a basically recognized by the academic enterprise theory.
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