Research On The Influence Of Supply Chain Concentration On Horizontal Merger And Acquisition Performance

With the continuous development and improvement of China’s capital market construction system,mergers and acquisitions have become one of the ways for enterprises to achieve rapid expansion.In recent years,horizontal merger and acquisition occupies a major position in the choice of the way of merger and reorganization of enterprises in our country.Whether in terms of the number of mergers and acquisitions or the transaction amount of mergers and acquisitions,horizontal mergers and acquisitions rank first among several M&A modes.The degree of supply chain concentration determines the difficulty of post-M&A supply chain integration,and as an important link of post-M&A integration,supply chain integration has an important impact on M&A performance,so the degree of supply chain concentration also has a profound impact on M&A performance.Although there are many studies on supply chain concentration,there are only a few studies that link supply chain concentration with horizontal M&A performance.Therefore,based on the Ashare horizontal mergers and acquisitions in China,this paper explores the impact mechanism of supply chain concentration on the performance of horizontal mergers and acquisitions.Based on the economies of scale theory,synergy theory,transaction cost theory and stakeholder theory,this paper studies the impact mechanism of supply chain concentration on the performance of horizontal mergers and acquisitions by taking the A-share listed companies from 2012 to 2019 as the research object.Firstly,the comprehensive score difference obtained by factor analysis of the financial data of the years before and after the horizontal merger and acquisition is used as the measurement standard of the explained variable,and it is divided into three groups for multiple regression analysis.An empirical study is conducted to verify the impact of supply chain concentration on horizontal M&A performance.Secondly,this paper adds cost stickiness to explore whether supply chain concentration affects horizontal M&A performance through cost stickiness.Thirdly,this paper conducts robustness test by changing explanatory variables,adding control variables and one-period-lagged explanatory variables to verify the accuracy of the research.Finally,in further analysis,this paper divides the samples into high and low groups according to the mean value of China’s economic policy uncertainty index,and further explores the moderating role of economic policy uncertainty in the relationship between supply chain concentration and horizontal M&A performance.Finally,this paper draws the following conclusions: first,supply chain concentration has a significantly positive effect on horizontal M&A performance;Second,supply chain concentration has a significantly negative effect on cost stickiness;Third,cost stickiness has a significantly negative effect on horizontal M&A performance;Fourth,cost stickiness mediates the relationship between supply chain concentration and horizontal merger performance.