Foreign Chambers Of Commerce And Corporate Cross-Regional M&A

Enterprises are an important subject for achieving technological innovation,an important source for securing employment and increasing national tax revenue,and play an important role in promoting the transformation of government functions,helping rural revitalization,and achieving high-quality development.However,enterprises do not exist in a vacuum,and the friction that naturally exists in business relationships and business networks with other market players may be an important obstacle to their development.Unlike many countries,barriers to enterprise development in China are characterized by distinctly differentiated geographies.Compared to local development,enterprises committed to off-site development face not only trade barriers such as information asymmetry and lack of trust,but also local protection and the resulting domestic market segmentation.Cross-regional M&A is a way to realize the reorganization of their own resources and capital in other places under new property rights arrangements,which helps optimize the allocation of resources and achieve coordinated regional development,especially nowadays the deterioration of the international economic environment makes the cross-regional development of enterprises in the domestic market more and more important.Therefore,exploring how enterprises can effectively break the barriers to cross-regional development is not only crucial to enterprise development at the micro level,but also an important way to reduce the imbalance of development between regions and help achieve common prosperity at the macro level.As a joint,non-profit intermediary organization,the most distinctive feature of chambers of commerce is that they build formal social networks based on business relationships,which can theoretically help to overcome the obstacles to business relationships.In November 2003,the Ministry of Civil Affairs issued the "Opinions on Issues Related to the Registration of Foreign Chambers of Commerce",and chambers of commerce began to gain legal status and were established one after another,entering a golden period of development,initiated by enterprises in their place of origin who had made foreign investments,with applications and approvals independent of their hometown.With the continuous development of China’s market economy system,the social attributes of chambers of commerce in the process of economic and social development are becoming more and more perfect.Based on the above research background and on the basis of dissecting the real-world problems,this paper constructs provincial paired panel data on unrelated heterogeneous mergers and acquisitions of Chinese A-share listed companies from 2008-2021 to explore in depth whether heterogeneous chambers of commerce can help hometown firms overcome cross-regional development barriers and promote cross-regional M&A decisions,and to examine the two-way promotion effect,heterogeneity analysis,and economic The findings are as follows.The following conclusions are drawn:(1)Heterogeneous chambers of commerce can facilitate cross-regional M&A of firms from the province of origin to the province of activity.(2)Further,it is found that the heterogeneous chambers of commerce can also increase M&As from the active province to the province of origin,i.e.,there is a two-way promotion effect.(3)Heterogeneity analysis shows that the promotion effect of exotic chambers of commerce on cross-regional M&As is more pronounced when the market development of the M&A location is low,the more imperfect the development of market intermediary organizations and the legal institutional environment,the more serious the government intervention in the market,and the lower the level of inter-regional trust.(4)In terms of the economic consequences,the chambers of commerce can improve the short-term performance of cross-regional M&As.Finally,based on the above findings,corresponding countermeasures are suggested in three aspects:government focusing on the power of private business organizations,enterprises insisting on honest operation according to the law,and accelerating the process of regional marketization.