The Empirical Research On The Impact Of Venture Capital On The Cross-border M&A Premium Of Chinese Listed Firms

With the guidance of policies and the abundance of social funds,the domestic venture capital industry had developed in full swing in recent years.The corporate governance effectiveness of venture capital institutions had also become a concern of scholars' focus.M&A was one of the important development methods of enterprises,but few scholars had studied the effectiveness of venture capital institutions from this perspective.This paper attempted to analyze the impact of venture capital institutions on M&A premiums by using the external governance mechanism of cross-border M&A activities as a research entry point.On this basis,it had enriched and improved the relevant research on the effectiveness of institutional investors in corporate governance,and helped people to re-understand the role of venture capital institutions in the capital market.This paper first defined relevant concepts,sorted out and commented on related literatures.Secondly,it expounded the relevant theoretical basis,discussed the mechanism of venture capital institutions affecting M&A premium,and put forward the research hypothesis of this paper.Then this paper took the cross-border M&A events completed by Chinese listed companies from 2003 to 2018 as the research object.Based on the empirical analysis,the paper drew the following conclusions:listed companies with venture capital background,the cross-border M&A premium was significantly lower.When the mergers experience was less,or the bidding countries'quality of the information environment was poor,venture capital institutions could alleviate the problem of information asymmetry in cross-border mergers and acquisitions,thereby significantly reducing the M&A premium.Further research also found that high shareholding ratio,joint investment,state-owned background,and experienced venture capital institutions could effectively control the cross-border M&A premium.