The Peer Effect of Serial Mergers and Acquisitions and the Internal Control of Enterprises
ZHANG Xiaoxu, YAO Haixin,DU Xinyu
2021, 23 (6):
22-31.
DOI: 10.15936/j.cnki.1008-3758.2021.06.004
This paper takes the serial M&A transactions completed by Chinese companies listed on A-share market in Shanghai and Shenzhen from 2010 to 2019 as a sample to investigate the peer effect of serial M&A, and examines the mechanism of internal control quality on the peer effect of serial M&A. It is found in the study that the greater the average transaction number of serial M&A in peer companies, the greater the probability of serial M&A of listed companies, and the higher the frequency of serial M&A. That is, serial M&A of listed companies are affected by the peer effect. The quality of internal control can not only promote serial M&A of listed companies, but also reduce the irrational behaviors that may exist in serial M&A. It plays a part of the mediating role in the relationship of serial M&A affected by the peer effect. That is, the quality of internal control has a certain degree of restraint on the peer effect of serial M&A. This paper uses Sobel-Goodman test and propensity score matching method (PSM) to conduct robustness tests, and finds that the above conclusions are still valid.
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