Work

Institutional cross-ownership and M&A premiums: Micro evidence from China

Year: 2025

Type: article

Abstract: Adopting micro panel data with Chinese listed firms between 2009 and 2022, this study examines the impact of Institutional Cross-ownership on acquisition premiums. The results show that common ownership significantly reduces M&A premiums, and this finding is robust to various tests and endogeneity controls. Mechanism analysis reveals that the effect operates through improved accounting quality and investment efficiency. Further evidence shows that managerial ability and perceived policy uncertainty strengthen this effect, which is more pronounced in state-owned enterprises. This study provides new micro-level evidence on institutional ownership's role in M&A pricing and offers policy implications for governance improvement.

Source: International Review of Economics & Finance

DOI: 10.1016/j.iref.2025.104576

Authors: Qingjuan Wang, Keke Bai, Yang Li

Institutions: Henan University of Economic and Law, Capital University of Economics and Business, Anyang Institute of Technology, Sichuan Normal University

Language: English

Topic: Corporate Finance and Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: gold

Estimated APC paid: $1,930

OpenAlex ID: W4413821065

FWCI: 2.717

Cites: 35

Cited by: 1

Related to: 10