Government Audit Supervision and Enterprise Mergers and Acquisitions
In the external environment of enterprises,government audit serves as a unique supervision mechanism aimed at promoting high-quality development through effective audit supervision.Since 2010,the National Audit Office of China has repeatedly highlighted issues related to enterprise mer-gers and acquisitions in its announcements.This article focuses on A-share listed companies controlled by central state-owned enterprises during 2008-2018 and establishes a difference-in-differences model to examine the impact of government audit supervision on enterprise M&As.We find that govem-ment audit supervision reduces the number and scale of M&As.Further research shows that government audit has a more significant impact in enterprises facing higher legal risks and financing constraints.Additionally,government audits supervision can reduce enterprises'M&A premiums and affect payment methods.Moreover,government audit supervision significantly improves the short-term and long-term performance of M&As.The results provide empirical evidence for the governance effect of government audit on informed decision-making within enterprises.Furthermore,these findings are significant in shed-ding light on the role of government audit in China and enhancing the performance of enterprise M&As.
Government Audit SupervisionMergers and AcquisitionsCentral EnterprisesGovernance Effect
万方数据
维普
