Capital Mobility, Corporate Governance and MA Performance - An Empirical Research Based on A-share Listed Companies in China

摘要

In order to study the impact of corporate governance on the M&A performance and to explore whether capital liquidity can be a mediating variable to affect their relationship, this paper takes a sample of major listed companies with equity M&A from 2011 to 2013. The paper firstly studies the short-term performance of the sample companies within one year after M&A and the long-term performance of two years after M&A. This paper finds that six aspects including the ratio of the largest shareholder shareholdings, the size of the board of directors, separation of the roles of the chairman and the general manager, management incentives (management compensation and shareholdings), the ratio of institutional shareholdings have positive correlation with M&A performance. Meanwhile, the paper finds that three segmentation variables including the size of the board of directors, management shareholdings, and the ratio of institutional shareholdings also influence corporate M&A performance through capital liquidity. These results imply that capital mobility does play a mediating role between corporate governance and M&A performance.