An Empirical Study On The Influence Of Specialization Level And Local Protection On Cross-regional Mergers And Acquisitions Of Chinese Listed Companies

Cross-regional mergers and acquisitions as an important channel for expanding the scale of companies,realizing industrial restructuring,and promoting the development of regional integration are increasingly valued by companies.As a kind of market behavior of companies,cross-regional mergers and acquisitions will inevitably be affected by this“invisible hand”of the market,and the level of regional specialization in the market structure will have a greater impact on the preferences of companies for cross-regional mergers and acquisitions.At the same time,cross-regional mergers and acquisitions may also be affected by the government's“visible hand",and the government's local protection behavior restricts cross-regional mergers and acquisitions.Therefore,under the background of China's special fiscal decentralization system,it is of great significance to study the level of specialization and local protection for the comprehensive impact of cross-regional mergers and acquisitions.Firstly,based on the "structure-conduct-performance" analysis paradigm and market internalization theory,the dissertation systematically analyzes the influence mechanism and logic approach of specialization differences on cross-regional merger and acquisition preferences.By investigating the differences in cross-regional M&A decision making by companies with different types of ownership,this paper analyzes the influence of M&A types on the differences in specialization and cross-regional M&A preferences.The paper further introduces the perspective of local protectionism and explores whether local protection can undermine the impact of specialization on cross-regional mergers and acquisitions.Based on the theoretical analysis,the paper establishes a logit model and uses the data of M&A data of listed companies in China from 2002 to 2016 as an example to empirically examine the influence of specialization differences and local protection on the cross-regional mergers and acquisitions of listed companies in China.The empirical findings of the paper find that:First,the differences in specialization will promote the cross-regional M&A decisions of listed companies in China.Listed companies with specialized advantages will be more likely to merge specialization in disadvantaged companies in order to give full play to their s specialized advantages.Second,central state-owned listed companies will have greater potential to adopt cross-regional mergers and acquisitions,while local state-owned listed companies will have less cross-regional mergers and acquisitions.Third,the existence of local protectionism has weakened the role of specialization to promote cross-regional mergers and acquisitions.Local governments have set limits for cross-regional mergers and acquisitions,hindering the development of cross-regional mergers and acquisitions.According to the research results,this paper puts forward corresponding policy recommendations to promote cross-regional mergers and acquisitions and regional integration of companies:On the one hand,the government should curb local protectionism by signing cross-regional administrative agreements,create open and free markets,and reduce regional differences,hand in hand and develop together.On the other hand,companies should formulate appropriate and appropriate merger and acquisition strategies,flexibly select target companies,and give full play to their own specialized advantages.At the same time,they should choose the concept of common development,strive for the support of target company management and local government,and reduce the obstruction of cross-regional mergers and acquisitions..The possible innovations of this paper mainly include the following three points:First,the research perspective of this paper is novel.At present,there are few studies on specialization differences and cross-regional mergers and acquisitions in the academic community.This article draws on Fresard's(2017)research on specialization differences and cross-border mergers and acquisitions.It is of great practical significance to explore the impact of specialization on the cross-regional mergers and acquisitions of Chinese companies and to guide the company's actual cross-regional mergers and acquisitions.Secondly,this article introduces the perspective of government competition,and the relevant literature only analyzes the different ownership enterprises.The influence of government intervention has not been explored from the perspective of local protectionism caused by excessive local government competition.Third,the sample period selected in this paper is longer.The location of the company is identified by the company name,which greatly enriches the sample size and makes research result more robust.