Government Intervention And M&A Performance In The Perspective Of Enterprise Life Cycle

In recent years, along with domestic industries upgrading and mixed ownership reform, China’s listing Corporation M&A activities continue to heat up. However, there is large difference between the enterprise M&A performance, the life cycle heterogeneity has been widely recognized. At the same time, because China is in the transition period, the government intervention is more complex and broad than the developed countries. Therefore, it has important theoretical and practical significance to research the influence of government intervention on the M & A performance in the perspective of the enterprise life cycle.This paper, firstly, based on the relevant literature, expounds the theories of M&A performance, government intervention and the enterprise life cycle and puts forward the research hypothesis;then, constructs the M&A performance comprehensive score model and multiple linear regression model, and according to the empirical results analyzes the relation between government intervention and M&A performance in the perspective of the enterprise life cycle; finally, raises some suggestions to improve the M&A performance and promote the transformation of government functions. The results indicate that the M&A performance of the enterprise under government intervention is worse than that of the enterprise which is not under government intervention; the influence of government intervention on enterprise M&A performance shows the characteristic of the enterprise life cycle heterogeneity which is serious negative on the enterprise under growth stage and insignificant on the enterprise under mature stage, insignificant positive in the short term and insignificant negative in the long term on the enterprise under recession phase; whether the government intervention exists or not, the performances of the enterprises under the growth, the mature and the recession phase, all begin to decline from the second year after the M&A.