Property-rights Attributes, Political Connection And M&A Performance Of Culture Corporations

As a new growth point of national economy in our country, cultural industry is playing an important role to change the way of promoting and upgrading China’s economic development, and to promote the optimization of economic structure. M&A is an important implement for denotative development, which has great significance to promote cultural enterprise collectivization, promote cultural industry upgrading, and to allocate resources. At present, cultural enterprises are in the boom of merger, acquisition and reorganization. But for the dual nature of economic and ideological that cultural industry has, cultural enterprises property rights attributes associated with political influence become important endogenous factors effecting the efficiency of M&A and M&A integration.This study choose the impact of cultural enterprises property rights attributes associated with the political on cultural enterprise M&A performance as the research object. Chapter 2 summarizes and interviews the current study, and Chapter 3 makes the Theoretical analysis and put forward a series of research hypothesis. Firstly, cultural enterprises compared with common industry, are more easily affected by political factors for their nature of ideological. Then, cultural enterprises in China have the dual nature of economic and ideological and have special development history, so the state-owned cultural enterprises have stronger political connection with government, with the characters of political connection department diversification and political connection area diversification, and more financial subsidies. Finally, it analyzes the dual influence of political relevance to M&A performance and put forward the hypothesis of this article.Chapter 4 and Chapter 5 are the real evidence. This study choose the 102 Public cultural conglomerate’s merger cases done by 2012, utilize the CSMAR Database, Shanghai Evening Post, Eastmoneycom and annual financial reports to collect data and gain 228 valid sample data. Then, we design two main models based on current study and theory analysis to test the relationship between property attributes and political connection, and the relationship between political connection and cultural enterprises M&A performance. Lastly, we made the robustness test.Chapter 6 gives the research conclusions of this article, including that state-owned cultural enterprises have more senior management with political background, and have more political geographical diversification and more political department diversification, and could gain more financial subsidies from government than privately operated cultural enterprises; cultural enterprises political strength has positive correlation with M&A performance; Political association strength is an important in mediation variables in the relationship between property-rights attributes and cultural enterprises M&A performance, which is complex..Based on the research conclusions, Chapter 6 also gives some policy suggestions: we should perfect our cultural market system to improve the cultural enterprise M&A efficiency and benefit; The government should give full play to the management and supervision role in merger and acquisition activity; Cultural enterprises should perfect governance structure to improve the efficiency of governance and we also should develop the M&A market intermediary service institutions, etc.