| Under the background of the new normal of economic development,the ability of modern finance to provide services for the real economy has been highly valued.In recent years,China’s venture capital industry has become an important part of China’s financial market,which plays an important role in fostering emerging industries,supporting technological innovation and promoting economic development.Faced with the pressure of economic transformation and the reality that the state vigorously advocates the high-quality development of industries,considering the important position of venture capital in modern finance,exploring the relationship between venture capital and enterprise strategic behavior has become an important breakthrough point for enterprises and even regions and industries to seek optimal development.With the further improvement of China’s capital market,M&A has become an effective way for enterprises to expand their business scale,concentrate their advantages,promote their rapid growth and enhance their market competitiveness.Cross-regional M&A is not only a means for enterprises to achieve large-scale development,expand business scope and enhance competitiveness,but also an important way to promote cross regional flow of resources and coordinated development among regions.Cross-regional M&A is a complex and changeable system engineering.In the process of M&A,especially in long distance M&A,there are many difficulties,such as low information transparency,external environment and internal uncertainty of target enterprises,which lead to the enterprises need to bear greater risks and costs.Therefore,the acquirers often use independent third-party forces such as professional consulting agencies or investment institutions to change the information weakness and effectively cope with the possible problems in acquisition.As a professional investment institution,venture capital plays a more and more important role in the promotion of corporate strategy with multiple identities of investors,consulting service providers and even management participants.However,there are few literature that combine venture capital with M&A behavior.Scholars’ research on the impact of venture capital on M&A strategy mainly focuses on the economic consequences of M&A behavior,while there is a lack of research on the impact of venture capital on M&A behavior itself.The research on the impact of venture capital involvement based on location selection and other M&A strategic behaviors has not received much attention.The mechanism of whether and why the venture capital intervention affects the M&A strategy behavior of the invested enterprises remains to be explored and revealed,and whether the investment strategy of venture capital institutions will affect the M&A strategy of the invested enterprises,there are also "black boxes" of research.Based on the above considerations,this paper uses the M&A events of Listed Companies in China from 2008 to 2018 as the research object,and studies the influence of venture capital involvement,regional expertise of venture capital,and participation degree on the cross-regional M&A decision.The main conclusions are as follows.Firstly,compared with enterprises without venture capital participation,enterprises supported by venture capital more frequently carry out cross-regional M&A,prefer long-distance M&A,and have higher cross-regional M&A expenditure scale.The influence of venture capital support on the frequency,distance and scale of crossregional M&A has three characteristics: more significant in cross provincial M&A than in cross city M&A in the same province;more significant in the sample of actual controller with non-state background;more significantly reflected in the sample of main board and small and medium-sized board.Secondly,both the cross-regional investment expertise and geographical diversity of venture capital stimulate the long-distance M&A behavior of the invested enterprises.The acquirer and its venture capital institutions show similar preferences in investment behavior.The more imperfect the local institutional environment of the acquirer is,the greater the influence of venture capital regional expertise on the long distance M&A preference of the invested firm is.The regional expertise of venture capital has a more significant impact on the long-distance M&A in the countercurrent M&A scenario.The contagion effect is more significant when the acquirer is in the region with poor institutional environment.The contagion effect also makes the enterprises in the low institutional environment more inclined to merge in the region with the inferior institutional environment.The contagion effect is more significant when the venture capital is geographically close to the invested enterprise.Thirdly,the degree of venture capital participation promotes the expansion of the scale of M&A,which is different among enterprises with different management characteristics.Management characteristics such as ownership concentration,CEO tenure,board size and management overconfidence all have an impact on the relationship between venture capital participation and the scale of M&A.Higher equity concentration restricts the impact of venture capital intervention on the scale of crossregional M&A.CEO tenure reinforces the influence of venture capital participation on the scale of cross-regional M&A.The size of the board of directors inhibits the influence of venture capital participation on the scale of cross-regional M&A.The overconfidence of management has an inverted U-shaped moderating effect on venture capital participation and cross-regional M&A.The conclusion of this paper shows that the support of venture capital has a very important impact on long-distance M&A.The characteristics of venture capital institutions can guide the strategic direction and strategic choice of enterprises.Although venture capital and invested enterprises are two kinds of different organizations with strong heterogeneity,Venture capital plays multiple roles of “coach”,“consultant”,“management server” and “supervisor”.The imitation mechanism based on the support of social capital,information acquisition and reputation signals stimulates the organizational learning of venture capital,which is a heterogeneous peer enterprise,and strengthens the enterprise’s prediction of the prospect of cross regional operation.Venture capital has produced the impetus to encourage enterprises to choose the path of regional diversification.The knowledge,resources,experience and reputation accumulated by venture capital institutions in specific regions and fields provide the basis for enterprises to make more risky and challenging strategic choices.Therefore,the M&A behavior of enterprises shows the preference of regional diversification.This paper proves that venture capital not only plays an important role in the long-term development of enterprises,but also will become an important driving force for the cross regional flow of resources,regional development and even the transformation and upgrading of regional industries and the high-quality development of China’s industries.The research results of this paper extend the relevant theories and practical evidences in the field of organizational strategic management,venture capital and merger and acquisition,mainly as follows:1.It enriched the theory of organizational strategy.This study confirms that strategic learning and strategic imitation also exist between two types of heterogeneous peer firms,thus extending the previous research paradigm that only discusses organizational learning and strategic imitation between homogeneous firms.This paper focuses on the learning and imitation mechanism of the investee as the active party to the investment strategy of the venture capital institutions,so as to make up for and improve the shortcomings of the previous research that only regard the venture capital institutions as the active influencing party.2.It deepened the theory of the influence of venture capital on enterprise strategy.From the perspective of the relationship between the investment strategies of venture capital institutions and the investment strategies of the invested enterprises,this paper discusses the strategic behavior convergence of the venture capital institutions and the invested enterprises in the regional preference and choice of investment.It provides a new research perspective for the theoretical field to study the post-investment management of venture capital.3.This paper expands the research paradigm of M&A location choice.The theoretical analysis framework of venture capital and location choice of remote merger and acquisition is established.This paper not only reveals the mechanism of the influence of venture capital support on the cross-regional M&A preference of the invested enterprises,but also analyzes the adjustment mechanism of the external environmental factors of the regional institutional environment and the internal governance factors of the management characteristics,so as to provide new theoretical basis and empirical evidence for the research of cross-regional M&A.In addition,the previous research on the issue of cross-regional M&A mostly uses the single dimension0/1 variable(that is,whether it is cross-regional or not).This study uses the large sample analysis of the specific geographical distance between the two places through the technical means of data mining,and verifies the relevant research viewpoints of this paper more accurately,scientifically and multi dimensionally.In a word,this study is of great significance to deepen the understanding of the strategic behavior interaction between venture capital institutions and invested enterprises,and to expand the research of strategic management.It also provides a new theoretical perspective and practical reference for enterprises to carry out cross regional resource flow. |
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