Management Ability, Property Rights and Corporate M&A Performance — Empirical Evidence Based on Engineering Companies

Abstract

The project is the cell of an enterprise, and the engineering project management is the foundation of the construction enterprise management. Strengthening the management research of the construction enterprise can improve the ability of the enterprise project to succeed in the market. M&A is an inevitable requirement of socialized large-scale production, an important way for enterprise expansion and industrial structure upgrading. This paper examines the impact of engineering company management ability on long-term M&A performance of companies, which takes 2014-2016 China A-share construction industry and real estate industry listed companies as samples. The paper analyses the lagging effect of management ability and corporate M&A performance, and uses group regression to test the regulation effect of property rights on management ability and M&A performance. This study finds that management ability has a significant positive impact on long-term M&A performance, that is, the stronger ability the management has, the higher performance the a corporate mergers and acquisitions will show. Further research also indicates that under different property rights, there is no significant difference in the impact of management ability on long-term M&A performance. However, compared with non-state-owned enterprises, state-owned enterprises are more cautious about M&A, so their business performance is more stable.