A Study On The Relationship Among Political Connection, Internal Governance And The Selection Of M & A Strategic

So far, western countries have set off the 5 wave of M & A. M & A is one of the important ways to expanse enterprise’ scale and realize the optimization of resource allocation in the world. But from the fact of domestic acquisition, with the gradual completion of the equity division reform of listing Corporation in China, as well as the perfection of domestic capital market, M & A of listing Corporation in China has entered a new stage of development, whether purpose or ways are showing different characteristics. In the new economic situation, M & A of listing Corporation is showing new features, and required further research for M & A strategic choice from a new perspective. M & A market is the external mechanism and one of the internal factors of corporate governance, and play a role with the effects of the directors of the company ownership structure, governance, incentive mechanism and other factors. Political association is a kind of political connections and a kind of access to resources, affecting the company’s strategic decisions. Therefore, we choose political connections, internal governance and M & A strategic choice into a research framework, and adopt the combination of theory and empirical research method, and further study this three factors.Choosing a sample of all of M & A events of listed company China from 2009 to 2013,we examine the relationship within political connections, internal governance and M & A strategic choice. First, the relevant research literature at home and abroad were reviewed, and analyzed the mechanism of interaction within political association, internal governance and M & A strategic choice. Then proposing hypotheses, and building Logit regression model, we examine the empirical analysis of the data of sample by means of metrology software. And concluding some results about the relationship within political connections, internal governance and M & A strategic choice. We find that the higher the proportion of state-owned shares of the company, companies are more inclined to related M & A; that the larger the size of the board or the higher the proportion of independent directors, companies are more inclined to related M & A; and that related M & A more occurs in a higher proportion of independent directors of the enterprise; and that the higher proportion of managerial ownership, the enterprise more tend to enter unrelated industries, and make unrelated M & A. Selecting political association as the moderator, we further found that only some of the hypotheses were confirmed. That is political connection positively moderated the relationship between the proportion of state-owned shares and M &A strategic choice. Finally, based on the above research conclusions, we obtained some beneficial enlightenment.