Investigating the linkages between industrial policies and M&amp;A dynamics: Evidence from China

Barbieri, Elisa; Huang, Manli; Pi, Shenglei; Pollio, Chiara; Rubini, Lauretta

doi:10.1016/j.chieco.2021.101654

Cited by 12 publications

(6 citation statements)

References 74 publications

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“…More specifically, they need complementary technologies, while horizontal M&A often promotes similar technologies. Another possible explanation may be that SOEs are more inclined to vertical M&A (Barbieri et al, 2021 ), and the above results of this paper have proved the innovation performance of SOEs is more persistent.…”

Section: Discussionsupporting

confidence: 57%

Green merger and acquisition decision driven by environmental regulation and its impact on green innovation: evidence from Chinese heavily polluting listed enterprises

Sun

Wang

et al. 2023

Environ Dev Sustain

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How heavily polluting enterprises achieve sustainable development has become an urgent issue to be solved. Based on the data of Chinese heavily polluting listed enterprises during the period of 2010–2020, this paper adopts the probit method to examine how heterogeneous environmental regulations affect green merger and acquisition (GMA) decision, and propensity score matching and difference-in-differences method to explore innovation performance of GMA. The findings are as follows: (1) Command-and-control environmental regulation (CMCER) can promote GMA, while there exists a U-shaped relationship between market-based environmental regulation (MBER) and GMA; (2) from a dynamic perspective, it turns out that GMA can promote green innovation (GI) in the first and second post-acquisition year, but this effect disappears in the third year; (3) compared with CMCER, MBER has a more pronounced positive effect on the relationship between GMA and GI; (4) heterogeneous analysis indicates that the above GMA performance is more persistent when the acquirer is state-owned, with high media attention, with high internal control or engages in vertical GMA. The findings further enrich the literature on GMA driver and performance and provide references for optimizing ER policies and promoting corporate sustainable development.

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Section: Discussionsupporting

confidence: 57%

Green merger and acquisition decision driven by environmental regulation and its impact on green innovation: evidence from Chinese heavily polluting listed enterprises

Sun

Wang

et al. 2023

Environ Dev Sustain

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“…Studies focusing on the comparative analysis of anti-monopoly regulations (e.g., Soomro et al, 2021) generally suggest that Chinese supervisory bodies are not excessively restrictive with regard to consolidations involving domestic companies, but may exhibit a substantial degree of protectionist oversight over transactions in which the acquirer is a foreign-owned entity. In fact, the industrial policies implemented by Chinese regulatory authorities may increase the likelihood of consolidations in some sectors, particularly those, in which the industrial policy is intended to grow local champions (Barbieri et al, 2021). It remains unclear how the ongoing consolidations impact the degree of competition within the affected industries.…”

Section: The Specific Features Of Manda Activities Of Chinese Companiesmentioning

confidence: 99%

Do Corporate Consolidations Affect the Competitive Positioning of Non-Financial Firms in China?

Osiichuk,

Wnuczak

2023

SAGE Open

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In a quest for economies of scale, access to technologies, and, most importantly, expansion of market share, Chinese public companies have been engaged in several consecutive waves of mergers and acquisitions (M&As) involving mostly domestically domiciled non-listed targets from the same or adjacent industries. Relying on a comprehensive panel dataset of 7,998 transactions completed between 1993 and 2020 by 2,842 publicly listed acquirers domiciled in China, the paper attempts to establish whether M&A deals allow acquirers to improve their market share and, consequently, their relative market position. We use dynamic panel regression and ordered logit models to establish and quantify the link between deal characteristics and the post-deal market share of the combined entities. Our empirical findings demonstrate that corporate consolidations exercise no significant impact on the relative competitive positioning of firms. Only acquisitions by industry leaders produce a sizeable increase in the latter’s market share and lead to higher industry concentration. Most consolidations occur among outsiders exhibiting a high degree of similarity, relatively lower profitability, and stagnant market shares within the more competitive industries with higher rates of firm creation. These consolidations, often in the form of mergers, are not effective in advancing the combined entities’ competitive positioning. Despite the fact that the bulk of corporate consolidations appears unlikely to constitute a threat to competition in the medium term, careful regulatory oversight may be warranted within the currently fragmented and highly commoditized industries, which appear likely to consolidate at the fastest pace. JEL Classification: G30, G32.

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“…Such assurances significantly diminished investor risk apprehensions, thereby drawing increased capital participation 33 . Barbieri et al (2021) argued that, under the guidance and encouragement of industrial policies, corporate actions became more aligned with national strategic objectives 34 . This not only bolstered corporate legitimacy and credibility but might also have further ignited their motivation for international expansion.…”

Section: The Direct Impact Of Industrial Policy On Cross-border Merge...mentioning

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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Investigating the linkages between industrial policies and M&A dynamics: Evidence from China

Cited by 12 publications

References 74 publications

Green merger and acquisition decision driven by environmental regulation and its impact on green innovation: evidence from Chinese heavily polluting listed enterprises

Green merger and acquisition decision driven by environmental regulation and its impact on green innovation: evidence from Chinese heavily polluting listed enterprises

Do Corporate Consolidations Affect the Competitive Positioning of Non-Financial Firms in China?

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

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