Policy Effect of Mergers and Acquisitions

Abstract：Taking the companies listed in Shanghai and Shenzhen in 2005- 2016 and the mergers and acquisitions(M&A) data of Shanghai and Shenzhen A stock listed companies from 2005 to 2019 as the sample，based on the M&A policy introduced by China in 2010，using the methods of panel binary selection model，poisson model and dynamic panel model，the authors study the implementation effect of M&A policy from the micro level of enterprises. It is found that，in terms of quantity，the probability and quantity of M&A is improved significantly after the M&A policy；but in terms of quality，though，after the M&A policy，the short-term financial performance of all these enterprises is improved，the long-term financial performance of private enterprises and local state- owned enterprises is decreased，and the long- term financial performance of central enterprises is improved. Further research shows that the M&A policy improves the long-term performance of M&A companies by alleviating the financing constraints，and reduces the long- term performance of M&A companies by means of government subsidies.The conclusion means that the promulgation of M&A policy has different effect on different ownership enterprises：for the central companies，the probability and quantity of M&A is increased，and the performance of M&A is improved；for the private enterprises and local state- owned enterprises，although the probability and number of M&A is increased，the long- term financial performance is decreased.

Key words：M&A Policy；implementation effect；Corporate M&A；M&A performance；financing constraints