Research On The Impact Of Institutional Investors' Shareholder Network Centrality On The Mergers And Acquisitions Of State-owned Enterprises

At present,China's economy has shifted from high-speed growth to high-quality development,and the market-oriented allocation of factors regardes as the focus of development.Since the Third Plenary Session of the 18 th Central Committee,the reform of state-owned enterprises(hereinafter referred to as SOEs)has gradually accelerated,and mergers and acquisitions(Hereinafter referred to as M&A)have become an important means to realize the optimal allocation of SOEs' resources.However,China's SOEs have the special attribute of being interfered by the government,and the M&A of SOEs are also affected by government promotion.Through practice,it finds that compared with private enterprises,there are more M&A of SOEs,but the M&A performance still needs to be improved.Therefore,it has strong practical significance to study the possibility and effect of SOEs' M&A.In the reform of SOEs,it is increasingly necessary for shareholders to make scientific decisions.Institutional investor shareholders,as an important type of shareholder introduced by SOEs,have gradually become the focus of attention on their influence on SOEs' M&A.However,most of the existing related researches only focus on individual institutional investor shareholders,such as the level of shareholding,cannot fully explain why institutional investor shareholders have an impact on SOEs' M&A.This paper further makes a breakthrough in the individual research of institutional investor shareholders,considering the relationship between institutional investor shareholders,and it believes that when the same institutional investor invests in different enterprises and the same enterprise is held by different institutional investors,it will gradually form an institutional investor shareholder network.Institutional investor shareholders at the center of the network have more resources and may have a stronger impact on the M&A of SOEs.On the basis of traditional corporate governance theory and combined with complex network theory,this paper mainly studies whether institutional investor shareholder network centrality has played a role in the possibility,completion rate and performance of SOEs' M&A,why it can play a role,and how to play a greater role.This paper summarizes the existing scholars' research literature of the M&A possibility,M&A completion rate,M&A performance measurement and influencing factors,institutional investor network types and their economic consequences,and institutional investor shareholders influence on corporate M&A.Relevant basic theories such as complex networks,principal-agent,shareholder activism,information asymmetry,resources and factor markets put forward the research hypotheses of this paper;On the basis of constructing the institutional investor shareholder network and defining the institutional investor shareholder network centrality,from the perspective of its participation in the governance of SOEs,study the relationship between different types of institutional investor shareholder network centrality and the possibility of SOEs' M&A,the completion rate of SOEs' M&A and performance of SOEs' M&A.And find SOEs' M&A motivation and M&A behavior as the action path of institutional investor shareholder network centrality influence the SOEs' M&A possibility,SOEs' M&A completion rate and SOEs' M&A performance.From the perspectives of financing constraints,market conditions,internal control effectiveness,information asymmetry,financial supply-side structural reforms,and the degree of regional financial development,it analyzes moderating effect on the relationship between institutional investor shareholder network centrality and the SOEs' M&A possibility,SOEs' M&A completion rate and SOEs' M&A performance.According to the conclusions of the research,countermeasures and suggestions are put forward from the perspectives of institutional investors,other investors,listed SOEs,and policy formulation,and elaborate on the research deficiencies and future research directions.This paper starts with qualitative methods,and gradually expands the steps of model building and empirical analysis.The data comes from CSMAR,Flush i Fin D and Wind database.The index variables are manually sorted and calculated.Comprehensive use of descriptive statistics,correlation analysis,multiple linear regression,logistic regression,propensity-worthy score matching,Heckman two-stage self-selection correction,instrumental variables,substitution variables and other methods to conduct large-sample empirical analysis of the content to be studied.The research find in this paper:(1)The centrality of institutional investor shareholder network reduces the possibility of SOEs' M&A.Compared with banks and insurance companies,the network centrality of securities and fund companies has a significant inhibitory effect on SOEs' M&A;Compared with M&A initiated by SOEs as a means of sale,institutional investor shareholder network centrality can significantly reduce the possibility of SOEs as buyers initiating M&A.Institutional investor shareholder network centrality reduces the possibility of SOEs' M&A by reducing the first and second types of agency costs and the degree of management overconfidence.The smaller the degree of financing constraints of SOEs,the more conducive to institutional investor shareholder network centrality restraining the possibility of SOEs' M&A;The impact of different market conditions on the centrality of institutional investor shareholder network centrality in reducing the possibility of SOEs' M&A is less obvious.(2)The centrality of institutional investor shareholder network has increased the completion rate of SOEs' M&A.The network centrality of securities,funds,banks,and insurance companies has a significant positive impact on the completion rate of SOEs' M&A.Compared with banks and insurance companies,the network centrality of securities and funds is more conducive to improving the completion rate of SOEs' M&A;Compared with central SOEs,the centrality of institutional investor shareholder network is conducive to improving the completion rate of local SOEs' M&A.Institutional investor shareholder network centrality is mainly to increase the completion rate of SOEs' M&A by reducing the implementation of M&A premiums,but cannot play a role in improving the completion rate of SOEs' M&A by reducing associated M&A decision-making behaviors.In an environment with deficiencies in internal control,the centrality of institutional investor shareholder network will be restrained in increasing the completion rate of SOEs' M&A;The lower the degree of information asymmetry of SOEs,the more conducive to the role of institutional investor shareholder network centrality in improving the completion rate of SOEs' M&A.(3)The centrality of institutional investor shareholder network has improved the financial performance and market performance of SOEs' M&A.Compared with banks and insurance companies,the network centrality of securities and fund companies is more conducive to improving the financial performance of SOEs' M&A;The network centrality of securities,funds,banks,and insurance companies are all conducive to improving the market performance of SOEs' M&A;In the sample of central SOEs,the centrality of institutional investor shareholder network is no longer significant in improving the financial performance of M&A.Institutional investor shareholder network centrality increases the financial performance of SOEs' M&A by reducing the peer M&A decision-making behavior in the SOEs industry and the implementation of high-leverage M&A,but there is no evidence that it increases the market performance of SOEs' M&A.The structural reform of the financial supply side is conducive to the centrality of institutional investor shareholder network to further improve the performance of SOEs' M&A;Compared with regions with high levels of financial development,institutional investor shareholder network centrality can more effectively improve the financial performance of SOEs' M&A in regions with low levels of financial development.Compared with regions with low levels of financial development,institutional investor shareholder network centrality can more effectively improve the markets performance of SOEs' M&A in regions with high levels of financial development.The research significance and contribution of this paper are as follows:(1)Theoretical significance.This paper takes SOEs' M&A and institutional investor shareholder network centrality as the entry point,and enriches the relevant theories of institutional investor shareholders participation in SOEs' governance and SOEs' M&A.1)From the characteristics of institutional investor shareholder network to explore the relationship between institutional investor shareholders and SOEs' M&A possibility,SOEs' M&A completion rate and SOEs' M&A performance,expand the existing relevant research scope.2)From the perspective of the intermediary effect of SOEs' M&A motives and M&A behavior,it is the first case to study the relationship between institutional investor shareholder network centrality and SOEs' M&A possibility,SOEs' M&A completion rate and SOEs' M&A performance,and provides new empirical evidence for the theoretical research on existing institutional investor shareholder participation in SOEs' M&A.3)The factors affecting the relationship between institutional investor shareholder network centrality and SOEs' M&A possibility,SOEs' M&A completion rate and SOEs' M&A performance are divided into internal and external dimensions for discussion,which enriches the existing relevant research content.(2)Practical significance.1)It provides a solution for reducing the blind M&A of SOEs',improving the completion rate and performance of SOEs' M&A,thereby helping the formulation of relevant policies of SOEs and further reform practices;Help the senior management of SOEs to determine whether to introduce institutional investor shareholders and how to introduce institutional investor shareholders to provide theoretical guidance and reference.2)Trying to guide investors to better understand the role of institutional investor shareholders and their network locations on SOEs' M&A and their role in the capital market,which will help investors understand the influence of institutional investor shareholder network characteristics on SOEs' M&A motivation,M&A behavior,and the occurrence and effect of M&A,and provide reference suggestions for investors to make effective investment decisions.The innovations of this paper are:(1)Empirically test whether institutional investor shareholder network centrality affects SOEs' M&A possibility,SOEs' M&A completion rate and SOEs' M&A performance,and divide the heterogeneity of institutional investor shareholders,which further enriches the research conclusions of this paper.(2)Empirically researched the relationship between institutional investor shareholder network centrality and SOEs' M&A motivations and M&A behaviors and find the role path of institutional investor shareholder network centrality affecting SOEs' M&A possibility,SOEs' M&A completion rate and SOEs' M&A performance.It explains why institutional investor shareholder network centrality can influence the occurrence and effect of SOEs' M&A through the motives and behaviors of SOEs' M&A.(3)It proposes that financing constraints,market conditions,internal control effectiveness,information asymmetry,financial supply-side structural reforms,and regional financial development are the internal and external factors that influence the centrality of investor shareholder network on SOEs' M&A possibility,SOEs' M&A completion rate and SOEs' M&A performance.It solves the problem of how to further reduce the blind M&A of SOEs and improve the completion rate of SOEs' M&A and the performance of SOEs' M&A through institutional investor shareholder network centrality.(4)Systematic,comprehensive,and targeted research on the motives of SOEs' M&A and the classification of SOEs' M&A behaviors,and put forward new ideas for future research on institutional investor shareholders participating in SOEs' M&A,while providing data support for related research.