Alleviation Effect of Mergers and Acquisitions on Financing Constraints Research
- DOI
- 10.2991/aebmr.k.191217.105How to use a DOI?
- Keywords
- Financing constraints, Mergers & Acquisitions, Investment–cash flow sensitivity, Mitigating effect
- Abstract
This paper studies whether M & A can alleviate the financing constraints of the main merging party, taking the M & A experience data of Chinese listed companies in 2010-2016 as an example. Through the research, we find that: (1) the listed companies in M & A generally have the problem of financing constraints before M & A, and the degree of financing constraints has been relieved one year after the completion of M & A; (2) the degree of easing of financing constraints by mergers and acquisitions is affected by the way of transaction payment, and the degree of financing constraints by equity payment is significantly reduced; (3) The easing degree is affected by the maturity of internal capital market, and the mitigation effect of mergers and acquisitions on small-scale companies is better than that on large-scale companies; (4) the mitigation degree is affected by the maturity of internal capital market, and the mitigation effect of M&A on small-scale companies is better than that of large-scale companies; The conclusion of this paper enriches the research of M & A and financing constraints to a certain extent, and suggests that relevant departments should pay more attention to the development of M & A of SMEs.
- Copyright
- © 2019, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Yue Yin AU - Shaoni Zhou2 PY - 2019 DA - 2019/12/20 TI - Alleviation Effect of Mergers and Acquisitions on Financing Constraints Research BT - Proceedings of the 2019 International Conference on Economic Management and Cultural Industry (ICEMCI 2019) PB - Atlantis Press SP - 577 EP - 583 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.191217.105 DO - 10.2991/aebmr.k.191217.105 ID - Yin2019 ER -