Effects Of Political Relationship On The Performance Of M&A

Mergers and acquisitions as a way of business expansion and reform attracted more and more attention. With the rise of M & A market, more and more enterprises in the national policy of desire and profit driven wheel, set off a wave of mergers and acquisitions. Government maybe for their own political goals or local governments to address local deficits, will participate in mergers and acquisitions activity, which will bring a lot of uncertainty for corporate mergers and acquisitions. When the government realized that enterprises will have an impact on companies, entrepreneurs have begun to get involved in the political sphere, in order to seek political relations. Companies hope that through the establishment of relations with the government to establish the influence of the government in order to influence the formulation and implementation of government decisions, to provide a competitive advantage to obtain economic benefits. In this paper, the political force to explore the relationship between private enterprise affect performance of its acquisitions, as well as the strength and type of political relationship have an impact on whether M & A performance, digging deeper political relations affect the mechanism of mergers and acquisitions performance, rich performance in the field of mergers and acquisitions research results, for entrepreneurs to provide a correct view of political relations basis.Firstly, based on the resource-based theory and the theory of rent-seeking, political relations as a business enterprise resources, based on social theory, to build political relations system metrics. Recalling the relevant scholars on the political relations affect the performance of M & A research lite rature, summed up the perspective of existing research topics and research scholars.Secondly, the political relationship between the performance impact mechanism for mergers and acquisitions and the corresponding assumptions, in order to verify the hypotheses, the article selected in 2011 in Shanghai and Shenzhen 118 listed companies in mergers and acquisitions of private data as samples. application of factor analysis, profit from, operations, development, debt four aspects of performance indicator system was evaluated before and after the acquisition of the company.Thirdly, the article in the descriptive analysis of the sample data, found a large number of politically connected private listed companies. Analysis found that: have political relations with its corporate acquisition performance positively correlated. Then separately from the enterprise strength and political relations type two angles, analyze its effects on M & A performance. The results show that: the stronger the political relations, the better the performance of its acquisition; compared to the central political relations, a greater impact on M & A performance of local political power relations, further validate the assumption of this article.Finally, a certain amount of summary and puts forward a number of suggestions to be able to provide new ideas for the research performance of M, while providing a theoretical basis for mergers and acquisitions of private behavior, promote M & A performance.