Performance feedback on sales growth and M&A: Evidence from China

IF 1.3 4区经济学 Q3 ECONOMICS

Japan and the World Economy Pub Date : 2024-01-05 DOI:10.1016/j.japwor.2023.101236

Jianquan Guo , He Cheng

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引用次数: 0

Abstract

This study examines the effects of performance feedback on sales growth relative to social and historical aspirations on corporate merger and acquisition (M&A) decisions and M&A performance. A sample of 924 M&A deals announced by Chinese manufacturing firms between January 2006 and June 2022 is analyzed using logistic regression and multiple linear regression. Robustness tests are also conducted to show that the main results are consistent. We find that (1) negative performance feedback relative to social aspiration motivates acquirers to undertake more risk in M&A-related decisions such as choosing overseas targets and using non-deferred payments in deal structure; while negative historical performance feedback significantly encourages acquirers to choose deferred deal structure. Positive performance feedback does not have a significant impact on acquirers’ choices; (2) In terms of M&A performance, both negative and positive performance feedback relative to social aspiration can have a positive effect on M&A performance; while historical performance feedback cannot affect M&A performance. This paper addresses the heterogeneity of the effects of performance feedback (which is divided into historical and social performance feedback) on firm behavior and contributes to the Behavioral Theory of Firms and Stewardship theory.

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销售增长和并购的绩效反馈：来自中国的证据

本研究探讨了相对于社会和历史期望的销售增长绩效反馈对企业并购（M&A）决策和并购绩效的影响。本研究以 2006 年 1 月至 2022 年 6 月期间中国制造业企业宣布的 924 宗并购交易为样本，采用逻辑回归和多元线性回归进行分析。我们还进行了稳健性检验，以证明主要结果是一致的。我们发现：(1) 相对于社会期望的负绩效反馈促使并购方在并购相关决策中承担更多风险，如选择海外目标和在交易结构中使用非递延支付；而负历史绩效反馈显著鼓励并购方选择递延交易结构。正向绩效反馈对并购方的选择没有显著影响；（2）在并购绩效方面，相对于社会期望的负向和正向绩效反馈都会对并购绩效产生积极影响，而历史绩效反馈不会影响并购绩效。本文探讨了绩效反馈（分为历史绩效反馈和社会绩效反馈）对企业行为影响的异质性，为企业行为理论和管理理论做出了贡献。

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来源期刊

Japan and the World Economy ECONOMICS-

CiteScore

2.60

自引率

0.00%

发文量

审稿时长

46 days

期刊介绍： The increase in Japan share of international trade and financial transactions has had a major impact on the world economy in general and on the U.S. economy in particular. The new economic interdependence between Japan and its trading partners created a variety of problems and so raised many issues that require further study. Japan and the World Economy will publish original research in economics, finance, managerial sciences, and marketing that express these concerns.