Study On The Influence Of Venture Capital On The Merger And Acquisition Of Enterprises In Different Places

Cross-regional capital flow is an important carrier for optimizing the allocation of resources between regions,promoting domestic economic circulation,and promoting coordinated regional development.In recent years,among Chinese listed companies,the scale of mergers and acquisitions has increased,and the number of mergers and acquisitions has also increased.Cross-regional mergers and acquisitions can not only help companies expand at low cost and promote large-scale development,but also improve the competitiveness of companies,becoming an important way to promote the flow of factors across regions and promote coordinated regional development.In the literature on mergers and acquisitions,the role of venture capital in mergers and acquisitions is a hot topic.However,in the previous literature,Chinese scholars’ research on this issue mostly focused on the field of cross-border mergers and acquisitions,and there was less analysis of domestic cross-provincial mergers and acquisitions.China has a vast territory and great differences in regional development,so cross-distance mergers and acquisitions between enterprises in China are also an issue worth exploring.Based on this,this paper takes domestic cross-regional M&A events as the research object,and takes the cross-provincial M&A transactions implemented by Chinese A-share listed enterprises in China from 2012 to 2021 as a sample to explore the impact of venture capital on cross-regional capital flow from the perspective of long-distance M&A,and further analyzes the regulating role of the institutional environment of the location of the acquirer.The study finds that:(1)the higher the degree of participation in venture capital,the more it can promote the expansion of the scale of long-distance mergers and acquisitions by invested enterprises.(2)Under the background of reverse M&A of enterprises in underdeveloped regions acquiring enterprises in developed regions,the impact of venture capital intervention on long-distance M&A is more significant,and venture capital participation can stimulate enterprises in underdeveloped regions to expand their investment scale in long-distance M&A.(3)The improvement of the marketization degree and the degree of openness of the investee enterprises can positively promote the relationship between venture capital and the scale of long-distance mergers and acquisitions.The research results confirm the experience of venture capital in promoting the cross-regional flow of funds,reveal the impact of the institutional environment of the location of enterprises on cross-regional M&A,which is conducive to the realization of large-scale operation of enterprises,thereby improving the competitiveness and market share of enterprises,providing guidance for enterprises to adjust the strategic layout of M&A activities in combination with institutional environment factors,and has important reference value for optimizing the decision-making of enterprises in different places and promoting the coordinated development of inter-regional economy.