An Empirical Study of the Effects of Corporate Governance on Merger and Acquisition

This paper studies the relationship between corporate governance and Merger and Acquisition with 921 Chinese listed companies as our sample. Empirical outcome shows: ownership structure is an important factor which drives a listed company to be M&A targeted company; the proportion of largest shareholdings and the second to the tenth largest shareholding ratio and state share proportion have a significant negative relation with the possibility of being targeted company. However, board of directors´ governance has not significant relation with the possibility of being targeted. Whether board chairman and CEO are the same person and independent director´s ratio are not closely related with the possibility of being targeted companies.