The Empirical Research About The Effect Of The Listed Companies’ Executives’political Background On State-Owned Property Merger And Acquisition

With the rapid development of global economy and under the background of the continuous adjustment of industrial structure all over the world, the enterprise expansion transformation characterized by acquisition and reorganization and the reform that improves the survival and competitiveness further rise. After China’s reform and opening up, the rapid development of economy, the industrial structure continuously upgrades and transforms continuously and the relation between global economy and socialist market economy is increasingly close. The enterprise acquisition and organization in China are the hot issue in this transformation period. However, the state-owned property that flows into the capital market through enterprise merger and acquisition is the important practical issue in the national economic development and industrial structural transformation in China at the current stage. This issue has become the focus of many economic scholars and experts in China.Recently, many scholars have found through research that the background characteristics of management, such as education, professional experience, cultural background and major of the member of top management team, will directly or indirectly affect the enterprise strategic decision and performance, and such influence may change with the different management. Therefore, under the traditional "relation" culture in China, the working experience of enterprise manager in government will certainly be one of the important personal background characteristics of manager, whose influence on enterprise strategic decision is self-evident. As the acquisition is the priority among priorities of enterprise development strategy decision, it will be more affected by such characteristic of manager. In China, the acquisition of state-owned property is the most "attractive" in such acquisition because the state-owned property has low costs before flowing into the capital market; what’s more important, it will be protected by the "helping hand" of local government in most caused. But what’s the influence of the political background of enterprise managers on the acquisition of state-owned property? Therefore, from the perspective of the working experience of the senior management of listed company in government, this paper studies the influence of political background on the acquisition of state-owned property. The previous researches on the political background of the senior management are only limited to chairman and CEO and all senior managements are rarely inclusive in the category of sample. It is thought in this paper that the political background of top management team can supplement with each other, so this paper conducts statistics of the political background of all senior managements in the category of sample, thus making the results more reliable and real. Besides, as there are few researches on the acquisition of state-owned property in China, the problem concerning the political background of senior management is more targeted in this paper by taking the government department as the research sample.The empirical results in this paper show that the political background of acquiring company and its acquisition of state-owned property are of significant positive correlation, that is, the political background of an enterprise does impose positive influences on its acquisition of state-owned property; the political background of acquiring company and the acquisition turnover of state-owned property are of positive correlation; however, such influence and correlation are not significant; the political background of chairman imposes the largest influence on the acquisition compared with that of other senior management. In addition, it is found in this paper that whether the acquiring company and the acquired party (governmental department) are in the same city is of significant positive correlation with the acquisition of state-owned property of the former, in other words, the acquiring company easily acquires local state-owned property. Meanwhile, the asset size and whether the chairman is also the CEO will impose negative influence on the acquisition of state-owned property, but the ownership concentration imposes negative influence on it.