Does Social Trust Affect Deals Of Mergers And Acquisitions Among Listed Companies

China is mainly an "acquaintance" society as well as a "small circles" society which has relatively low levels of social trust.With the increasingly frequency M & A and reorganization transactions of listed companies since 2008,the impact of social trust on mergers and acquisitions of enterprises is naturally a topic worth exploring.Based on the practice of M & A in China's capital markets,this paper uses the data of listed companies in A-share market from 2008 to 2014 and traces the source of series deals and transactions.It examines the relationship between social trust and mergers and acquisitions of listed companies,achieving an organic cross between sociology and management.By using existed and self-built social trust metrics,we make empirical analysis on the hypothesis of this paper from three dimensions of active trust,passive trust and bilateral trust,under independent samples of provinces and companies separately.The study found that social trust has a positive effect on the occurrence of mergers and acquisitions of listed companies.Higher the degree of social trust in the region,higher the transaction frequency and relative trading volume.Besides,there is significantly positive relationship between social trust level and accomplishment probability,social trust can promote the process of M & A transactions.Higher the social trust,higher the probability of transaction accomplishment.It is up to the screening functions of social trust.Based on the results of empirical analysis,this paper also provides some suggestions on how to use the screening function of social trust to improve the efficiency of M & A transactions in the capital market,which can offer practical reference for acquirers,target companies and even M & A intermediaries such as security companies and investment banks.