Investigating the linkages between industrial policies and M&A dynamics: Evidence from China

作者：Barbieri, Elisa^*; Huang, Manli; Pi, Shenglei; Pollio, Chiara; Rubini, Lauretta

来源：China Economic Review, 2021, 69: 101654.

DOI：10.1016/j.chieco.2021.101654

• M&A
• China
• Planning policies
• Emerging sectors
• Selective policies

Mergers and acquisitions (M&As hereafter) have been widely examined in the economic and business literature under many perspectives. However, the industry-level view, specifically the relation between industrial policies and M&A waves at the sectoral level, has remained rather unexplored. This article contributes to fill this gap by empirically investigating the relation between selective industrial policies and M&A waves at the industry level in China. Referring to the four Five Year Plans covering the period 1996-2015, we explore whether being identified as an emerging sector in these plans generates positive or negative changes in the number of M&As. We reiterate the analysis according to the different types of M&As (vertical, horizontal or conglomerate) and the different natures of the acquirer (SOEs or private). Our results suggest that policies can differentially affect M&A waves according to the type of M&A. Moreover, while private firms are more responsive to both horizontal and vertical integration in emerging sectors, SOEs are more prone to engage in vertical M&As. We discuss the possible rationales behind the different behaviors. We also draw general policy implications on strategic industrial policy and market restructuring.

• 单位
  广州大学