Is Joint Venture Better?

In the context of deepening the supply-side reform,the Central Economic Working Conference put forward the key point of "more mergers and reorganizations,less bankruptcy liquidation" at the end of 2015.With the policy support,the M&A events in China’s capital market rise year by year.Successful merger is an important way for enterprises to development,in which securities companies play an important role as professional financial advisers.On the other hand,with the deepening of China’s reform,the financial market has also accelerated the opening up.Under the policies of"Measures for the Administration of Foreign-Funded Securities Companies" and"Measures on Further Opening up the Financial Sector" successively issued from 2018 to 2019,the development of joint-venture securities companies has seen promoted,and the comparison between joint-venture and local securities companies has become the focus of attention.Therefore,it is of great theoretical and practical significance to study whether joint venture financial consultants can improve the quality of merger and acquisition of listed companies and improve the efficiency of resource allocation in the capital market.This paper selects the material assets reorganizations of A-share market from 2008 to 2017,and finds that joint-venture financial advisors reduce the M&A performance in the short term compared with domestic financial advisors.This conclusion is still significant after overcoming endogeneity by means of Propensity Score Matching(PSM)and two-stage least square(2SLS).In the subsequent mechanism test,this paper finds that the joint venture financial advisers have a weaker relationship with the listed company,and can not play the role of relationship rent,so make the short-term M&A performance poorer.In the further test of heterogeneity,this paper find that the above conclusions are more significant in non-state-owned enterprises,small-sized listed companies and low-reputation financial advisers.Finally,in order to enhance robustness,the conclusion of this paper is still robust after using the alternative indicators of M&A performance in the long and short term and using the success rate of implementation instead of M&A performance.This paper expands the research on M&A performance,which not only provides ideas for listed companies to choose financial consultants,but also plays an important role in the development of joint venture securities companies under the new policy.