The impact of political connection on M&A activity in China
- Title
- The impact of political connection on M&A activity in China
- Other Titles
- 중국에서 정치관련이 M&A 활동에 미치는 영향
- Author
- XU CHENXI
- Alternative Author(s)
- 서신희
- Advisor(s)
- 강형구
- Issue Date
- 2018-08
- Publisher
- 한양대학교
- Degree
- Master
- Abstract
- This paper studies the influence of political connection on firms’ M&A (Merger and Acquisition) activities using samples of Chinese listed firms from 2002-2012. Chinese listed firms are significantly affected by political connections. Firms with political connection are more likely to engage M&A activities at comparably greater scales. Politically connected firms tends to acquire more state-owned firms. At the same time, we also investigate the influence of political connection on the performance of M&A. Upon completing an M&A, political connections are capable of increasing a firm’s stock price within a short period of time. However, political connection has shown negative effects on M&A performance in the long-run. These effects are more evident when the target firm is state-owned firm. As such, political connections as a non-market mechanism has proved to influence M&A activities. We suggest that supervision departments should monitor political connection stringently and enhance the degree of Chinese marketization to improve the performance of M&A activities.
- URI
- https://repository.hanyang.ac.kr/handle/20.500.11754/75363http://hanyang.dcollection.net/common/orgView/200000433525
- Appears in Collections:
- GRADUATE SCHOOL[S](대학원) > STRATEGIC MANAGEMENT(전략경영학과) > Theses (Master)
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