How Does Regional Religious Affect M&A Performance?

Religion has both cultural and institutional attributes,which influences the morality and behavior of individuals or organizations,business ethics and legal awareness of enterprises.In the process of sinicization,all kinds of religious cultures are integrated with Chinese culture,China’s national conditions and the requirements of the times,and gradually become a part of Chinese values.M&A is an important transaction activity of enterprises,which includes the process of M&A decision-making,transaction and integration,and reflects the ultimate success or failure through performance.In recent years,cultural factors have attracted much attention.China has a long history and a vast territory.There are great differences in cultures in different regions,.As an important part of social culture,religion’s development in a certain area is the comprehensive result of many cultural factors,such as population,history,geography,etc.,and even becomes an important symbol of local culture,nourishing the business ethics of local enterprises and influencing organizational behavior.From the enterprise level,this paper studies the influence of regional religious culture on this specific external interactive transaction process through mergers and acquisitions,and explores the possible mechanism.This paper finds that the regional religious culture strengthens the business ethics of enterprises,urges enterprises to abide by the advocacy of universal love,honesty,responsibility and universal love in mergers and acquisitions,builds trust foundation,avoids conflicts,performs duties,is self-interested and altruistic,improves the information transmission efficiency in mergers and acquisitions,plays a supervisory role,stimulates synergy and governance effects,and promotes the realization of long-term M&A performance.Furthermore,it is found that the positive influence of regional religious culture on the long-term M&A performance is more obvious among the related transaction groups,related M&A groups,groups with higher marketization and groups with lower openness.The research enrich the research conclusions of regional religious culture and capital market accounting.At the same time,providing information reference for investors has positive practical significance for protecting the interests of investors;Inspire the government to realize the influence of culture as an informal system on economic development and micro-subject behavior,and promote social gain;Inspire society to correctly understand the universal value of religious culture and promote social harmony.