Control Rights、Geopolitical Relations And M&A Performance

After 2008 financial crisis, merger and acquisition activities became more and more actively. On the one hand, it appeared because of the Chinese government strong stimulus policies; On the other hand, it was the requirement of Chinese industrial adjustment and upgrade. Based on former research of Chinese and foreign scholars and Chinese system background, this article from the angle of control rights and geopolitical relations to study the short-term M & A performance.As to the control rights, firstly, we explored the relationship between the nature of the enterprise and M & A performance. Secondly, this paper studied the effect of the proportion of the first shareholder.Finally, we researched the relationship between the proportion of state in corporation and performance of M & A from the mixture ownership. As for geopolitical relations, in order to study in different geographic locations on M & A performance, we divided ge opolitical relations into East, West and Middle. We also divided geopolitical rel ations into Bohai economic circle,Changjiang economic circle and Zhujiang eco nomic circle.We selected 329 merging samples from 2009 to 2012 and used the cumulative abnormal return (CAR) to measure the performance of mergers and acquisitions. The study found, state-owned enterprises was lower than that of the M & A performance of private enterprises; the proportion of the first shareholder degree had dual effects on the performance of mergers and acquisitions (hollowed out and support); the proportion of state in corporation had negative effect on M & a performance. When the two sides of M & A located in the same geopolitical relations, the acquirer got more value. But the results of Middle, Bohai economic circle and Zhujiang economic circle were not significant.What this paper differed from the existing literature was that we researche d geopolitical relations from the perspective of economic region instead of adm inistrative divisions. It was very significance to study the topic, suggesting that the government should not intervene in the market and should respect the dec isive role of the market in the allocation of resources. What was more, we sh ould hold a positive attitude to economic integration.