The Influence Of Regional Financial Development On Enterprise's Mergers And Acquisitions

With the deepening of the supply-side reform,China has gradually shifted from a high-growth incremental economy to a stock economy driven by structural adjustment and transformation.The demand of optimizing resource allocation in the stock economy makes mergers and acquisitions attract more and more attention from regulators and enterprises.At the same time,the stock economy also puts forward higher requirements for the perfection of the construction of the financial system.However,there is still a serious imbalance in the development of regional finance in China.Among the existing references,few literatures directly explore the relationship between financial environment changes and enterprise mergers and acquisitions.This paper aims to explore the influence of regional financial development on m&a,and then further studies the influence of regional financial development differences on m&a.Based on China's a-share listed companies in 2009-2017 data as sample,we take financial structure and financial scale at the provincial level as A measure of the level of regional financial development index,first by the empirical reflect regional financial development level of regional mergers and acquisitions amount,quantity,and merger and acquisition probability,the influence of the number and scale,and then further to Lord and companies and target companies in province level of financial development for the area is lain between,the existence of differences analysis of regional financial development level on the Lord and company performance after m&a and the impact of financing costs.The empirical results show that at the regional level,the promotion enterprise's level of financial development in provinces will promote the whole enterprise mergers and acquisitions,but results in regional heterogeneity,reflect to promote the relationship in the eastern region,the central region was not significant,and showed inhibition effects in the western region,and the enterprise level shows the same result,and validate the level of financial development is by alleviating financing constraints,in turn,promote enterprise mergers and acquisitions,the results also showed that the private enterprises because of regional financial development level and the sensitivity of the mergers and acquisitions is higher than state-owned enterprises,on the enterprise foreign mergers and acquisitions,difference of regional financial development level will promote enterprises to carry out foreign mergers and acquisitions,Enterprises that conduct mergers and acquisitions from regions with high financial development level to regions with low financial development level are more significant in terms of performance improvement,while enterprises that conduct mergers and acquisitions from regions with low financial development level to regions with high financial development level are more inclined to pay attention to the reduction of financing cost.