The Impact Of China's Market Segmentation On The Listed Companies Cross-province M&A

Since the reform and opening up,China has used only a few decades of M&A to complete the US M&A process for hundreds of years.Especially after the financial crisis in 2008,the living environment of enterprises has undergone tremendous changes.Under the economic downturn,enterprises can reduce the cost and the degree of competitiveness among enterprises through M&A.The number and the scale have increased year by year.However,in the past literature,it mainly studied the influence of external factors which contain political factors,directors' association and other external factors which contain political intervention and local government policy,and ignored the influence of market segmentation on the M&A of the listed company.Although the degree of market segmentation in China has declined at this stage,the phenomenon of market segmentation still exists objectively.Based on the two aspects of listed company's M&A motivation theory and government protection effect,this paper analyzes the impact of market segmentation on the listed company's cross-province M&A.Therefore,the research on market segmentation affecting the listed company's cross-province M&A can enrich the research about the market segmentation affecting the cross-province operating and the influencing factors of the listed company's cross-province M&A.This paper examines the possible impact of market segmentation on cross-province M&A from the perspective of enterprise M&A's motivation theory and government protection effect.In order to test the above theory,this paper empirically tests the research hypothesis of this paper based on the sample of non-financial listed companies in China from 2008 to 2016.The results show which the limited strategic expansion of the listed company caused by market segmentation,limited access to resources,and transaction costs increase the possibility of M&A.At the same time,the grouping results show that the adverse consequences caused by market segmentation will also promote the possibility of M&A of different property rights,different types of M&A,and different regions,in order to cope with the adverse effects caused by market segmentation.In addition,the domestic phenomenon based on Chinese characteristics analyzes the role of enterprise rent-seeking and political linkages in market segmentation affecting the listed companies cross-province M&A.After the empirical test,this paper finds that the enterprise rent-seeking activities have a positive effect on the market segmentation affecting the cross-province M&A;the central-level political association has a positive effect on the market segmentation affecting cross-province M&A,and the local political association has a negative effect on the market segmentation affecting cross-province M&A.Based on the research conclusions of this paper,several suggestions are made to the listed companies and local government.For the listed companies,target-company and target-area can be selected in a targeted manner to better improve the possibility of cross-province M&A and post-performance.For local government,they should perform their duties,relax the conditions for M&A and reduce the intervention of local companies.The local government should provide the good external environment for the listed companies.