The Influence of Economic Policy Uncertainty on Corporate Merger and Acquisition Behavior:A Viewpoint Rooted in the Precision of"Countercyclical"Macro-Policy Adjustments
This study employs data from Chinese corporations'merger and acquisition(M&A)cases from the SDC Global M&A Database across 2000 to 2019 to explore the repercussions of e-conomic policy uncertainty on corporate M&As.It reveals that economic policy uncertainty acts as a catalyst for M&A activities among Chinese firms,escalating the count of finalized deals while re-ducing the time to deal completion.A mechanistic examination posits that agency dilemmas and managerial overconfidence partially elucidate this phenomenon.After a heterogeneity analysis is conducted,it is discerned that the ramifications of economic policy uncertainty on M&As are nota-bly accentuated during economic downturns,in vertical and domestic M&As,state-owned enter-prises,manufacturing companies,and publicly traded firms.Consequently,it is suggested that eco-nomic policy uncertainty does not stifle M&A activity.In the context of"countercyclical"macro-policy adjustments,an exigent need arises for scientific evaluation of policy frameworks and exe-cution plans to mitigate potentially irrational motivations of corporate managers.
economic policy uncertaintycorporate mergers and acquisitionscountercyclical adjustments
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万方数据
