Industrial Policy,Accounting Conservatism And Corporate Mergers And Acquisitions

The 19th National Congress of the Communist Party of China pointed out that my country's current economic development has shifted from high-speed growth to high-quality development,and building a modern economic system urgently needs to optimize the allocation of stock resources.As an investment method for enterprises,enterprise mergers and acquisitions are both a market-oriented adjustment method of industrial structure and an effective stock adjustment method.In China,the government's control of resource allocation is mainly carried out through policy measures.In order to promote enterprise mergers and acquisitions,promote resource integration through mergers and acquisitions,achieve rapid development of enterprises,and improve enterprise competitiveness,the central government(the State Council and various ministries)have issued a series of Among the documents conducive to enterprise mergers and acquisitions,the industrial policy represented by the five-year plan is one of them.For example,the "Thirteenth Five-Year Plan" directly pointed out that encouraging enterprise mergers and acquisitions will promote the transformation and upgrading of traditional industries.Under the guidance of this industrial policy,governments at all levels will encourage corporate mergers and acquisitions through positive measures such as government subsidies,credit resource allocation,and tax incentives.It can be seen that,in theory,the promulgation and implementation of industrial policies will have a positive role in promoting corporate mergers and acquisitions.So in fact,has the formulation and implementation of industrial policies as one of the external institutional environments really promoted the occurrence of corporate mergers and acquisitions and realized the optimal allocation of resources?Existing literature rarely studies industrial policy from the perspective of M&A.In addition to considering the influencing factors of mergers and acquisitions from the perspective of the external environment,domestic and foreign scholars also studied the impact on corporate mergers and acquisitions from the perspective of the internal governance mechanism of the enterprise.Accounting conservatism,as an effective corporate governance mechanism,plays an important role in mitigating information asymmetry and inhibiting agency conflicts between shareholders and management,and can often affect mergers and acquisitions to a certain extent.Existing research finds that accounting conservatism has a significant governance effect on deviations in corporate decision-making behavior caused by managerial overconfidence and other management characteristics(Meng et al.,2015).So,does accounting robustness have a moderating effect on corporate decision-making behavior caused by the external institutional environment of the company?Few studies have considered that the effects of government's macro-policy have micro-individual differences.Therefore,it is necessary to examine how the degree of firmness of corporate accounting affects the relationship between industrial policy and M&A.It is of great significance to understand the decision-making motive of the enterprise and its influence.In view of this,this article takes the industrial policy implemented in China as the external institutional environment variable,and takes the merger and acquisition as a research perspective to study the role of accounting robustness in regulating corporate decision-making behavior caused by the external institutional environment of the enterprise.Based on this,this article takes the 2006-2018 A-share main board listed company as a research sample to study the issue of corporate mergers and acquisitions under the combined action of external macro industrial policy and internal accounting selection,and empirically test the impact of industrial policy on M&A decision-making and the moderating role of accounting robustness on industrial policy and M&A decision-making.The empirical results show that first,relative to companies that are not supported by industrial policy,those supported by industrial policy Enterprises are more inclined to make M&A decisions;second,the accounting conservatism will weaken the positive impact between industrial policy support and corporate merger and acquisition decisions.In further research,from the perspective of credit resources and seeking government subsidies,the in-depth discussion of the impact mechanism of industrial policies on corporate M&A decision-making options,and the use of corporate M&A performance as an entry point,tested the effect of industrial policy implementation and the regulatory effect of accounting robustness,which lead to the following conclusions:First,industrial policy affects the choice of M&A decisions by influencing the allocation of credit resources and the rent-seeking motives that trigger enterprises to seek subsidies;second,the M&A decisions of enterprises supported by industrial policies do not improve the long-term merger and acquisition value of enterprises,but accounting robustness will suppress the negative impact of industrial policies on the creation of corporate merger and acquisition value,that is,accounting robustness has played a role in governing the deviation of corporate merger and acquisition decisions caused by changes in the external institutional environment.The research in this article enriches the research on the economic consequences of industrial policies and the factors influencing corporate mergers and acquisitions,and provides a certain reference for further improving the formulation of industrial policies and the choice of the accounting conservatism of enterprises.