Inter-provincial Trade and Capital Flows Across Regions——From the Perspective of Inter-regional M&As in China
Promoting cross-regional flows of capital is an important initiative to build a unified national market,and how to help en-terprises break through administrative barriers to realize market expansion and resource integration deserves in-depth discussion.This paper examines the effect of inter-provincial trade on inter-provincial mergers and acquisitions,both from macro trade transpor-tation and micro supply chain linkage perspective,using the data of inter-provincial M&A events of A-share listed companies dur-ing 2008-2021.The result shows that inter-provincial trade significantly promotes the inter-provincial M&As.The information mechanism and risk aversion mechanism are the important mechanisms through which inter-provincial trade drives M&A activities.In the information mechanism,inter-provincial trade linkages alleviate the degree of information asymmetry between the parties and facilitate the learning of new technologies.In the risk aversion mechanism,buyer firms are motivated to avoid competitive substitu-tion risk and default risk,which enhances their willingness to engage in inter-provincial M&A.Further research supports the inter-provincial"export"learning effects and cross-provincial"import"learning effects.Meanwhile,strengthening the business and cred-it environments in the regions is conducive to further amplifying the driving effect of inter-provincial trade on M&As.This paper en-riches the existing researches on the inter-provincial M&As and provides policy insights for the promotion of inter-provincial invest-ment.
Inter-provincial TradeOffsite Supply ChainInter-regional Capital FlowsInter-regional M&AsBusiness Environ-ment
NETL
NSTL
万方数据
