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Could the Opening of HSR Reduce the M&A Premium?

Author

Listed:
  • Xuan Yang

    (School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China)

  • Qiusheng Zhang

    (School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China)

  • Xiaotian Shen

    (School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China)

  • Jie Qin

    (School of Business, Renmin University of China, Beijing 100872, China)

  • Qian Sun

    (School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China)

  • Yuanze Xu

    (School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China)

Abstract

This study takes the merger and acquisition (M&A) events completed by A-share listed companies in Shanghai and Shenzhen stock markets from 2006 to 2019 as the research samples and uses the dual difference method to test the impact of a “high-speed railway (HSR) opening”, a quasi-natural experimental event, on M&A premium. The results show that the opening of an HSR can significantly inhibit the M&A premium of listed companies in corresponding prefecture-level administrative regions. The results of the mechanism test show that an HSR opening affects M&A premium through two channels: “reducing information asymmetry” and “alleviating agency problems”. This study discusses the impact of an HSR opening on M&A, which helps to provide new empirical evidence for the economic consequences of an HSR opening from the micro level and provides a new perspective for research on the factors affecting M&A premium.

Suggested Citation

  • Xuan Yang & Qiusheng Zhang & Xiaotian Shen & Jie Qin & Qian Sun & Yuanze Xu, 2022. "Could the Opening of HSR Reduce the M&A Premium?," Sustainability, MDPI, vol. 14(10), pages 1-28, May.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:10:p:5756-:d:812180
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    References listed on IDEAS

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