Political Connection And M&A Performance

M&A and reorganization have emerged as one of the powerful drivers for expanding production,capital agglomeration,and expanding market influence.The company uses M&A to restructure and upgrade its scale,and it is popular among many companies by annexing other companies,realizing the upgrading of its own resource structure and enhancing its full-cycle competitiveness.Throughout the country,the M&A situation is also unstoppable.In recent years,companies have used M&A as a powerful tool to update their blood and integrate resources.Under this kind of driving,it has stimulated the prosperity of the M&A market.Due to factors such as information transmission errors,there is a certain friction in the M&A market,which cannot be fully and rationally developed.Therefore,the company's search for a reasonable political relationship to increase the company's M&A performance,and reduce external transaction costs to a lower level,and improve M&A efficiency.In addition,there are big differences in M&A behaviors within companies,such as payment methods.Studying the relationship between these three factors has a strong practical significance.The predecessors' literature basically only explores the relationship between these three variables.Few people discuss the changes in the M&A performance from the common perspective of payment methods and political connections.From the common perspective of the two,the article studies the relationship between M&A performance and the two,and broadens the academic field of M&A performance.The research content of this paper is as follows:1.Does political connection and payment method have any impact on the M&A performance of enterprises?If so,how does it affect?2.Does the payment method adjust the correlation between the other two?3.Does the political connection regulate the correlation between the other two?The results of the study show that:1.political connections replace formal systems,reduce rent-seeking losses,and reduce tax pressures.It is precisely because of these benefits that political connections lead to higher M&A performance.2.stock acquisitions reduce cash.Occupy,protect the rights and interests of minority shareholders,convey positive information to the M&A market,and reduce unnecessary losses caused by incomplete information.Therefore,stock payment brings higher M&A performance.3.the payment method has a negative adjustment effect on the correlation between political connection and M&A performance.4.the political connection has a positive adjustment effect on the correlation between payment methods and M&A performance.The article conducts theoretical and practical research,and puts forward reasonable suggestions from the company and the government in the final policy recommendations,which provides a basis for the company to conduct efficient and effective M&A,and what role the government plays in the M&A market.Played an important basis.