The Study of the Merger and Acquisition Behavior under the Perspective of Performance Feedback

Abstract

Abstract Based on the perspective of performance feedback, this paper sets the listed enterprises of the manufacturing industry in Shanghai and Shenzhen A shares from 2012 to 2017 as the study sample. The results of the solid evidence prove that when the enterprise cannot reach the expected performance, the feedback degree of negative performance will increase and the frequency of merger and acquisition would decrease with the increase of the gap between actual and expected performance. When implementing the regime of CEO double dipping as president, the inhibiting effect of the merger and acquisition behavior of negative performance feedback will become weak. On the contrary, when the political correlation intensity is high, the inhibiting effect of the merger and acquisition behavior of negative performance feedback will be enhanced.