How do political connections cause SOEs and non-SOEs to make different M&A decisions/performance? Evidence from China
© 2017 AFAANZ. This study examines the impact that political connections have on Mergers and Acquisitions (M & A) performance and the decisions of Chinese listed firms. We find that political connections destroy (create) value in SOEs (non-SOEs). Our findings show that connected SOEs are more li...
| Main Authors: | , , |
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| Format: | Journal Article |
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Wiley-Blackwell Publishing Asia
2017
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| Online Access: | http://hdl.handle.net/20.500.11937/57824 |
| _version_ | 1848760107875172352 |
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| author | Liu, Q. Luo, Tianpei Tian, G. |
| author_facet | Liu, Q. Luo, Tianpei Tian, G. |
| author_sort | Liu, Q. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | © 2017 AFAANZ. This study examines the impact that political connections have on Mergers and Acquisitions (M & A) performance and the decisions of Chinese listed firms. We find that political connections destroy (create) value in SOEs (non-SOEs). Our findings show that connected SOEs are more likely to acquire local targets, especially when the local unemployment rate is high and when the firms are controlled by the local government, and they are less likely to conduct vertical mergers. M & A decisions of connected non-SOEs are less influenced by the government; instead, political connections in non-SOEs help bidders to integrate vertically and obtain external financing support. |
| first_indexed | 2025-11-14T10:10:32Z |
| format | Journal Article |
| id | curtin-20.500.11937-57824 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T10:10:32Z |
| publishDate | 2017 |
| publisher | Wiley-Blackwell Publishing Asia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-578242017-11-20T08:58:16Z How do political connections cause SOEs and non-SOEs to make different M&A decisions/performance? Evidence from China Liu, Q. Luo, Tianpei Tian, G. © 2017 AFAANZ. This study examines the impact that political connections have on Mergers and Acquisitions (M & A) performance and the decisions of Chinese listed firms. We find that political connections destroy (create) value in SOEs (non-SOEs). Our findings show that connected SOEs are more likely to acquire local targets, especially when the local unemployment rate is high and when the firms are controlled by the local government, and they are less likely to conduct vertical mergers. M & A decisions of connected non-SOEs are less influenced by the government; instead, political connections in non-SOEs help bidders to integrate vertically and obtain external financing support. 2017 Journal Article http://hdl.handle.net/20.500.11937/57824 10.1111/acfi.12302 Wiley-Blackwell Publishing Asia restricted |
| spellingShingle | Liu, Q. Luo, Tianpei Tian, G. How do political connections cause SOEs and non-SOEs to make different M&A decisions/performance? Evidence from China |
| title | How do political connections cause SOEs and non-SOEs to make different M&A decisions/performance? Evidence from China |
| title_full | How do political connections cause SOEs and non-SOEs to make different M&A decisions/performance? Evidence from China |
| title_fullStr | How do political connections cause SOEs and non-SOEs to make different M&A decisions/performance? Evidence from China |
| title_full_unstemmed | How do political connections cause SOEs and non-SOEs to make different M&A decisions/performance? Evidence from China |
| title_short | How do political connections cause SOEs and non-SOEs to make different M&A decisions/performance? Evidence from China |
| title_sort | how do political connections cause soes and non-soes to make different m&a decisions/performance? evidence from china |
| url | http://hdl.handle.net/20.500.11937/57824 |