The Guiding Effect of Regulatory Minority Shareholders on Corporate mergers and Acquisitions:Evidence from China Securities Investor Services Center Exercise
Based on signal theory and limited attention theory,this study takes A-share listed firms from 2016 to 2021 as a sample to examine the impact and mechanisms of China Securities Investor Services Center(ISC)exercise behaviors on corporate mergers and acquisitions(M&As).We find that ISC exercises deliver negative signals,leading to poorer market responses to targeted M&A events.Mechanism tests show that ISC exercise attracts high attention from investors,media and regulatory authorities,which generates"guiding effect".Finally,long-term effect tests show that ISC targeted but successfully completed M&As have less earnings management and better long-term performance in post M&A periods.
Investor Services CenterMerger and AcquisitionGuiding EffectLimited Attention TheoryInvestor Protection
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