Governance or collusion? The M&A effects of common institutional ownership
Abstract This study examines the impact of common institutional ownership on corporate mergers and acquisitions (M&A) within China’s emerging market. The findings suggest that, while common institutional ownership decreases the likelihood of M&A, it positively influences the merger announcem...
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| Format: | Article |
| Language: | English |
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Springer Nature
2025-06-01
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| Series: | Humanities & Social Sciences Communications |
| Online Access: | https://doi.org/10.1057/s41599-025-05276-y |
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| author | Fangfang Zhou Lianghua Chen Libin Zhao Xiangfei Fu |
| author_facet | Fangfang Zhou Lianghua Chen Libin Zhao Xiangfei Fu |
| author_sort | Fangfang Zhou |
| collection | DOAJ |
| description | Abstract This study examines the impact of common institutional ownership on corporate mergers and acquisitions (M&A) within China’s emerging market. The findings suggest that, while common institutional ownership decreases the likelihood of M&A, it positively influences the merger announcement effect and merger performance. The heterogeneity analysis reveals that long-term and independent institutional investors play a more significant role in facilitating effective M&A. The mechanism analysis identifies two primary channels through which common institutional ownership exerts its influence: first, by leveraging acquisition experience and informational advantages to mitigate information asymmetry; second, by appointing directors and curbing managerial opportunism to strengthen corporate governance. These findings provide novel empirical evidence regarding the dual role of common institutional ownership in M&A, enriching the literature on its economic impact in emerging markets. Furthermore, they offer valuable insights for advancing well-structured M&A practices and refining capital market regulations. |
| format | Article |
| id | doaj-art-dc8efce0f20249179c573441d9f27afd |
| institution | OA Journals |
| issn | 2662-9992 |
| language | English |
| publishDate | 2025-06-01 |
| publisher | Springer Nature |
| record_format | Article |
| series | Humanities & Social Sciences Communications |
| spelling | doaj-art-dc8efce0f20249179c573441d9f27afd2025-08-20T02:10:30ZengSpringer NatureHumanities & Social Sciences Communications2662-99922025-06-0112111210.1057/s41599-025-05276-yGovernance or collusion? The M&A effects of common institutional ownershipFangfang Zhou0Lianghua Chen1Libin Zhao2Xiangfei Fu3School of Economics and Management, Southeast UniversitySchool of Economics and Management, Southeast UniversitySchool of Management, Wuhan Textile UniversitySchool of Accounting, Nanjing Audit UniversityAbstract This study examines the impact of common institutional ownership on corporate mergers and acquisitions (M&A) within China’s emerging market. The findings suggest that, while common institutional ownership decreases the likelihood of M&A, it positively influences the merger announcement effect and merger performance. The heterogeneity analysis reveals that long-term and independent institutional investors play a more significant role in facilitating effective M&A. The mechanism analysis identifies two primary channels through which common institutional ownership exerts its influence: first, by leveraging acquisition experience and informational advantages to mitigate information asymmetry; second, by appointing directors and curbing managerial opportunism to strengthen corporate governance. These findings provide novel empirical evidence regarding the dual role of common institutional ownership in M&A, enriching the literature on its economic impact in emerging markets. Furthermore, they offer valuable insights for advancing well-structured M&A practices and refining capital market regulations.https://doi.org/10.1057/s41599-025-05276-y |
| spellingShingle | Fangfang Zhou Lianghua Chen Libin Zhao Xiangfei Fu Governance or collusion? The M&A effects of common institutional ownership Humanities & Social Sciences Communications |
| title | Governance or collusion? The M&A effects of common institutional ownership |
| title_full | Governance or collusion? The M&A effects of common institutional ownership |
| title_fullStr | Governance or collusion? The M&A effects of common institutional ownership |
| title_full_unstemmed | Governance or collusion? The M&A effects of common institutional ownership |
| title_short | Governance or collusion? The M&A effects of common institutional ownership |
| title_sort | governance or collusion the m a effects of common institutional ownership |
| url | https://doi.org/10.1057/s41599-025-05276-y |
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