To what extent does corporate liquidity affect M&A decisions, method of payment and performance? Evidence from China
利用1998-2015年中国上市公司数据，研究发现现金充裕的企业更可能发起并购，尤其存在掏空行为时；高成长机会的收购方较少使用现金支付，且现金收购的短期和长期表现均较差。
Using a panel of Chinese listed firms over the period 1998–2015, we examine the extent to which liquidity impacts firms' acquisition decisions, method of payment choice, and performance following mergers. We observe that cash-rich firms are more likely to attempt acquisitions, especially if they are subject to tunneling. Next, we find that bidders with higher growth opportunities are less likely to use cash payments in acquisitions. This effect is stronger for financially constrained bidders, who face greater opportunity costs of holding cash. Our last set of results highlights the under-performance of cash acquisitions in both the short and long term.