Political Connection,Nature of Equity and Overseas M&A: A Perspective Based on “One Belt and One Road”

doi:10.16382/j.cnki.1000-5579.2018.05.016

Abstract

Abstract:

Using samples of overseas M&A (mergers and acquisitions)made by Chinese listed companies between 2009-2017,this paper examines how political connection and nature of equity affect the willingness and scale of cross-border M&A. It shows that enterprise's political connection and nature of equity don't influence the willingness of cross-border M&A alongside the Belt and Road,but affect the size of the acquisition. Companies with political connection merger bigger than companies without. The width and depth of political connection are positively correlated with the size of the acquisition. Chinese companies should concentrate on the economical profit on the one hand and try to achieve a win-win situation in the construction of "One Belt and One Road" on the other.

Key words: “One Belt and One Road”, overseas M&A, political connection, nature of equity

PAN Zhi-bin, GE Lin-nan. Political Connection,Nature of Equity and Overseas M&A: A Perspective Based on “One Belt and One Road”[J]. Journal of East China Normal University (Philosoph, 2018, 50(5): 120-127.

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