TITLE:
The Review of Factors Affecting Merger Premium
AUTHORS:
Chengcheng Zhang
KEYWORDS:
M&A Premium, Information Asymmetry, Principal-Agent Theory
JOURNAL NAME:
Journal of Service Science and Management,
Vol.12 No.2,
February
25,
2019
ABSTRACT: As mergers and acquisitions (M&A) become more and more frequent around the world, the phenomenon of the extreme premium in mergers and acquisitions has begun to expose to the public and attract the widespread attention of scholars. In particular, in recent years, Chinese enterprises have been extremely overpriced in mergers and acquisitions. Based on this, the paper reviews the literature about the determinants of M&A premium and the related theories from three aspects: macro environment factors, business factors and management factors. Finally, the shortcomings of the existing research are analyzed and the prospect of the future research is put forward.