An empirical research on influence factors of China's state-owned enterprises M&A financing risk

Abstract

M&A is a common way of enterprises capital operation which can effectively achieve low cost and high speed expansion. As a kind of capital operation mode, M&A always relies on financing to get trade funds. However different financing ways of M&A have different financing risk. This article star on the problem of financing that China's state-owned enterprises M&A existed, and according to the data of China's state-owned enterprises M&A in 2009 do a empirical research on influence factors of China's state-owned enterprises M&A financing risk from profit ability, the biggest shareholder holding ratio, trade scale, business scale, growth ability, remuneration rate of investment and the capital structure. Research found that: Ownership concentration, enterprises growth and profit ability, trade scale b are direct proportion to risk of dispersive control and stock prices falling; the remuneration rate of investment, total price of trade and capital structure are direct proportion to the bankruptcy risk; the scale of enterprises is direct proportion to the default risk.