Can government industrial policy enhance corporate bidding? The evidence of China

Chen, Yenn-Ru; Jiang, Xiaoquan; Weng, Chia-Hsiang

doi:10.1016/j.pacfin.2020.101288

Cited by 11 publications

(3 citation statements)

References 53 publications

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“…For foreign enterprises, this clarity effectively mitigated uncertainties inherent in investments, rendering M&A decisions more precise and efficient 30 . Chen et al noted that in the face of policies that promoted the growth of a specific sector, foreign enterprises often opted for cross-border M&A as a means to merge with local entities, aiming for synergy 32 . Such integrative strategies not only fortified a firm's market position but also potentially enhanced its production efficiency, innovation capacity, and market responsiveness.…”

Section: Theoretical Basis Analysis and Research Hypothesismentioning

confidence: 99%

The influence mechanism of industrial policies on Chinese companies' cross-border M&A decision-making

Shen,

Yang,

et al. 2023

Sci Rep

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This study explored the potential links between Chinese industrial policy and cross-border mergers and acquisitions by Chinese firms from 2009 to 2019. Based on describing China's industrial strategy and evaluating the then-current situation of Chinese enterprises' cross-border mergers and acquisitions, this empirical study constructed a two-way fixed-effect panel model and an intermediate effect model to assess the mechanism of industrial policy's influence on Chinese enterprises' cross-border mergers and acquisitions decisions. The findings were as follows: (1) Industrial policy could promote the implementation of cross-border mergers and acquisitions of Chinese enterprises; (2) By easing financial restrictions, industrial policy could improve firms' access to capital and encourage cross-border mergers and acquisitions. (3) Industrial policies could promote the high political relevance of state-owned enterprises, thus promoting the success of transnational mergers and acquisitions of enterprises. Therefore, it was significant to promote the transformation of industrial policy from subsidy-oriented to performance-oriented and rationally evaluate the risks and benefits of M&A for enterprises to complete cross-border M&A.

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Section: Theoretical Basis Analysis and Research Hypothesismentioning

confidence: 99%

The influence mechanism of industrial policies on Chinese companies' cross-border M&A decision-making

Shen,

Yang,

et al. 2023

Sci Rep

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“…In other words, government subsidies tend to favor green businesses when implementing green credit policy. From the perspective of local governments, green development enterprises assume more environmental responsibilities, which contributes to the improvement of local governments' environmental performance; from the perspective of enterprises, green development enterprises are proactive in technological innovation while assisting governments in achieving environmental performance (Li et al, 2018), bringing government-enterprise relations closer together (Kostovetsky, 2015;Chen et al, 2020). With regard to the 10.3389/fpsyg.2022.1041798 enterprises' own goals for obtaining government grants, the effect of grants on the green transformation of businesses can vary greatly.…”

Section: The Mediating Role Of Government Subsidiesmentioning

confidence: 99%

Green credit and enterprise green operation: Based on the perspective of enterprise green transformation

Niu

Zhao²,

Luo³

et al. 2022

Front. Psychol.

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This paper uses panel data of listed heavily polluting enterprises from 2007 to 2021, based on the perspective of transformation and upgrading of heavy polluters, innovatively studies the impact of green credit on the green operation of enterprises. At the micro level, the research results of this paper verify the effectiveness of green credit policy on the transformation of green enterprises. It is also found that the two intermediary paths of debt cost and government subsidy play a partial intermediary role in the process of green credit promoting green enterprise transformation and upgrading. Green credit policy also moderates the green transformation of enterprises through debt cost and government subsidies. Based on the research results, this paper puts forward targeted policy suggestions from the aspects of financing constraints, government subsidy policies, enterprise technological innovation and green operation, and provides empirical support for the current expansion of green credit policies in China.

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“…The first channel is that air pollution can lead to government intervention, especially industrial policies and environmental protection laws ( 77 ). Given the serious human health damage and welfare loss caused by air pollution, governments confront great social pressure to handle air pollution ( 25 , 42 , 78 – 80 ). China's government has published a series of policies to support the development of the health care industry.…”

Section: Transmission Mechanismmentioning

confidence: 99%

How Air Quality Affect Health Industry Stock Returns: New Evidence From the Quantile-on-Quantile Regression

Liu

Wang

Xiao

2021

Front. Public Health

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This paper discusses the asymmetric effect of air quality (AQ) on stock returns (SR) in China's health industry through the quantile-on-quantile (QQ) regression method. Compared to prior literature, our study provides the following contributions. Government intervention, especially industrial policy, is considered a fresh and essential component of analyzing frameworks in addition to investors' physiology and psychology. Next, because of the heterogeneous responses from different industries to AQ, industrial heterogeneity is thus considered in this paper. In addition, the QQ method examines the effect of specific quantiles between variables and does not consider structural break and temporal lag effects. We obtain the following empirical results. First, the coefficients between AQ and SR in the health service and health technology industries change from positive to negative as AQ deteriorates. Second, AQ always positively influences the health business industry, but the values of the coefficients are larger in good air. In addition, different from other industries, the coefficients in the health equipment industry are negative, but the values of the coefficients change with AQ. The conclusions provide important references for investors and other market participants to avoid biased decisions due to poor AQ and pay attention to government industrial policies.

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Can government industrial policy enhance corporate bidding? The evidence of China

Cited by 11 publications

References 53 publications

The influence mechanism of industrial policies on Chinese companies' cross-border M&A decision-making

The influence mechanism of industrial policies on Chinese companies' cross-border M&A decision-making

Green credit and enterprise green operation: Based on the perspective of enterprise green transformation

How Air Quality Affect Health Industry Stock Returns: New Evidence From the Quantile-on-Quantile Regression

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