As one of the core elements of corporate governance, the shareholding structure of the target company has a profound impact on the performance and integration effect of M&A. In order to reveal the influence mechanism of equity structure on cross-border M&A performance, a study on the impact of target company's equity structure on corporate cross-border M&A is proposed. Combined with managerialism theory, the relationship between managerial compensation and firm size is analyzed. This paper selects Chinese manufacturing cross-border M&A data from 2005-2019 for empirical analysis to explore the impact of equity structure on cross-border M&A performance, and introduces the internal control index as a mediator variable, which helps to analyze the mechanism of the impact of equity structure on cross-border M&A performance in a more comprehensive way. Comprehensive performance evaluation indexes are constructed through factor analysis, descriptive statistics and correlation analysis are conducted based on sample data, and then multiple regression models are established to verify the relationship between equity structure, internal control and cross-border M&A performance. Based on the analysis results, corresponding countermeasure suggestions are also put forward, including improving the supervision of the securities market, gradually reducing the proportion of shares held by the first largest shareholder of the enterprise, and accelerating the reform of state-owned shares, aiming to provide powerful support for Chinese enterprises to make scientific decisions and improve the success rate of M&A.

Xu Xueyan. A Study on the Impact of Target Company Equity Structure on Cross-border Mergers and Acquisitions of Enterprises. International Journal of Frontiers in Sociology (2024), Vol. 6, Issue 12: 63-71. https://doi.org/10.25236/IJFS.2024.061210.

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