Political Relevance,and M&A Performance

M&A and reorganization as an important way to seek technological innovation,realize resource complementarity and improve core competitiveness has become an important capital operation mode for enterprises to pursue the maximum of the whole value.Currently,China is in the transition from a planned economy to a market economy,regional development is in a state of imbalance,and the state-owned enterprises that are connected with the government have more access to resources to support the development of enterprises.This has prompted enterprises,especially private enterprises,to seek political ties in order to support their own development.At the same time,a good institutional environment can complement the formal mechanism and reduce the dependence of enterprises on the development of political relations.Due to the above history,economy,system mentioned above and enterprise's own factors and so on,the problem of M&A in our country is highlighted and the effect is not good.Therefore,it is very important to study the relationship between political connection,institutional environment and M&A performance.On the basis of efficiency theory,transaction cost theory and principal-agent theory,combed with the existing literature at home and abroad,this paper analyzes the impact of political association on M&A performance from the theoretical level,and studies the institutional environment,property rights attribute of political association and the regulation of M&A performance respectively.Then,taking the M&A data of Shanghai and Shenzhen A-share listed companies in 2009-2014 as the sample,the results are tested empirically.The results show that:(1)relative to the political associated enterprises,politically affiliated enterprise M&A performance increase is greater,that is,the political relationship of enterprises has positively affected the performance of M&A.(2)in the case of the enterprise with better institutional environment,the possibility of political connection in enterprises with poor institutional environment is higher,namely,the institutional environment positively affects the political connection of enterprises.(3)compared with the enterprises with better area institutional environment,the political association of the M&A performance improvement range is bigger in the enterprises with poor area institutional environment.In other words,the institutional environment negatively regulates the enterprise M&A performance effect of the corporate political association.(4)compared with state-owned enterprises,the enterprise M&A performance effect brought by political association of private enterprises is stronger,that is,the private enterprises can make better use of their own political connection.The research conclusion of this paper enriches the research system of M&A performance,and also studies the influence of the institutional environment on the relationship between political association and M&A performance from the perspective of government and market.The research results of this paper play a certain role in how the government can use the "tangible hand" to promote the healthy marketization reform.