Research On The Impact Of The Procuratorial Organ’s Administrative Public Interest Litigation System On The Loss Of State-owned Assets In Mergers And Acquisitions

State owned enterprises are not only the vanguard of undertaking the historical mission of the new era,but also the practitioner of the new journey of "becoming stronger,better and bigger".However,state-owned assets have been faced with a major threat to the loss of assets.SASAC emphasizes preventing the loss of state-owned assets.Moreover,China should firmly hold the red line of preventing the loss of state-owned assets.The system of administrative public interest litigation initiated by procuratorial organs was piloted in 73 cities in China from 2015 to 2017.It defines the scope of litigation,including the protection of state-owned assets.As an innovation of administrative public interest litigation system,whether it can effectively supervise the public interest and prevent the loss of state-owned assets needs to be deeply explored.After sorting out the M＆A transaction data of listed companies of state-owned enterprises,using the difference-in-differences method based on quasi natural experience,this paper makes an empirical analysis on the relationship between the procuratorial administrative public interest litigation system and the loss of assets in M＆A.The results show that:（1）The implementation of the pilot procuratorial administrative public interest litigation system has effectively restrained the loss of state-owned assets.This conclusion is still tenable after multiple robustness discussions such as parallel trend and dynamic effect test,placebo test and propensity score matching.（2）After analyzing the heterogeneity from the types of state-owned enterprises,the nature of enterprises and the types of M＆A,this paper has the following findings.Firstly,compared with provincial and central enterprises,the negative correlation between the loss of assets of other state-owned enterprises in M＆A transactions and the procuratorial administrative public interest litigation system is stronger.Secondly,compared with M＆A in the province or industry,when the buyer and the seller carry out M＆A activities across provinces and industries,the loss of state-owned assets is more strongly restrained by the implementation of this system.（3）When analyzing the regulation effect,this paper finds that the loss state of the seller’s enterprise before the implementation of M＆A will reduce the negative correlation between the procuratorial administrative public interest litigation system and the loss of state-owned assets.However,the intensity of law enforcement in the region will strengthen this relationship.（4）When analyzing the mechanism,this paper introduces the indicators of agency cost and information disclosure quality to make an empirical analysis on the function channel between the procuratorial administrative public interest litigation system and the loss of state-owned assets.Finally,according to the previous research conclusions,this paper puts forward several suggestions from the aspects of law implementation,mechanism construction and supervision.The recommendations are as follows:（1）Strengthen the implementation of the procuratorial administrative public interest litigation system and strengthen the protection effect of its state-owned assets.（2）Establish a working mechanism of comprehensive supervision and key procuratorial work to prevent loopholes in system supervision.（3）We will improve the value-added and preservation system of state-owned assets and give full play to the main role of state-owned enterprises.There are two main innovations in this paper.Firstly,this paper studies the loss of state-owned assets from the perspective of institutional innovation,and studies how to curb the loss of state-owned assets from the perspective of legal system and environmental change.Secondly,this paper makes an empirical analysis on the relationship between the procuratorial administrative public interest litigation system and the loss of state-owned assets by using the difference-in-differences method based on quasi natural experiment for the first time.