Research On The Influence And Mechanism Of Gambling Culture On Enterprise Mergers And Acquisitions

The 18 th National Congress of the Communist Party of China has set the tone for socialism with Chinese characteristics to enter a new era,which means that China’s economic development has also entered a new era.As an important way of enterprise development strategy,merger and reorganization can effectively integrate market resources and improve the quality of the real economy.China has gradually occupied an increasingly important position in the global market in recent years,accounting for about20% of the global M&A transaction volume and 13% of the transaction value in 2021.However,at present,there is still a lack of understanding of the risk of mergers and acquisitions in China.In the final analysis,the merger and acquisition decisions of enterprises are affected by their subjective perception and preference for objective risks.At present,the academia generally agrees that regional culture will have an impact on the strategic decisionmaking of enterprises.After thousands of years of vicarious changes,China’s vast territory has formed rich and diverse regional cultural types,which provides a natural experimental site for the study of "culture and finance." Some scholars have discussed more about the influence of traditional Chinese culture,such as Confucianism and business tradition,on corporate behaviors,while this paper focuses on regional differences in gambling culture and explores whether regional differences in gambling culture will affect corporate M&A decisions.If there is such an effect,what is the mechanism? In addition,under the guidance of the overall goal of high-quality economic development,what impact will gambling culture have on the performance of corporate M&A? Based on this,this paper focuses on the impact of gambling culture on corporate M&A and its mechanism.Taking A-share listed companies from 2009 to 2021 as the research object,this paper finds that:(1)listed companies in regions with strong gambling culture are more likely to initiate M&A;(2)Strong gambling culture increases the possibility of enterprises to initiate M&A activities by reducing the level of financing constraints;(3)State-owned shareholders and foreign shareholders weaken the possibility of M&A of listed companies in regions with strong gambling culture;(4)Gambling culture has differentiated impacts on M&A performance.Based on the informal institution of gambling culture,this paper explores its impact on M&A,which enriches the relevant research on the microeconomic consequences of gambling culture and provides a new cultural perspective on the influencing factors of M&A.In addition,it helps to have a more comprehensive understanding of the characteristics of China’s economic development and the regional cultural differences contained in the decision-making process of enterprises,and reminds corporate decision makers to pay attention to risks,so that they can make more prudent and wise decisions in M&A.At the same time,it provides new ideas for government departments on the path of cultural communication,which is conducive to their understanding of enterprises’ irrational decisions and timely guidance and supervision.