The tangible hand? Does Communist Party involvement in governance promote corporate M&A performance

Dandan Liu, Ying Zhu and Xinxin Xie

Finance Research Letters, 2024, vol. 61, issue C

Abstract: This paper investigates the impact of the Communist Party of China's (CPC) participation in corporate governance on the M&A performance of Chinese State-Owned Enterprises (SOEs). Using unbalanced panel data from 2008 to 2020, the findings demonstrate that while the CPC's involvement has no significant effect on short-term M&A performance, it positively impacts long-term performance. This effect is especially pronounced in local SOEs and cross-district M&A deals. The research underscores the need for a nuanced approach to political participation in corporate governance and contributes to the understanding of the dynamics in SOEs’ M&A performance.

Keywords: Corporate governance; Merger and acquisition performance; Heterogeneity effect; State-owned enterprises (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:61:y:2024:i:c:s1544612324000308

DOI: 10.1016/j.frl.2024.105000

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