Local Government's 'black Box' In Small And Medium-sized private Enterprises' Trans-ownership M&a Failure chinese Cases

摘要

Purpose - This paper aims to examine the reasons for small and medium sized private enterprises' (SMPE) trans-ownership M&A failure, with particular focus on the local government behavior in the multi-property claimant environment. Design/methodology/approach - Using evidence from two typical cases of private enterprises' trans-ownership M&A failure, the study adopts a multi-method approach to illuminating the important reason. Findings - The findings show that the alienation of local government is the most important reason for the failure of M&As and this has more to do with the economic and political gains of some individuals or groups in local governments than the ideology prejudice of local governments. Practical implications - The paper suggests that it is necessary for SMPEs not only to look into target corporation but also the local government, when they prepare to engage in trans-ownership M&A activities. Originality/value - The paper explores the alienation of local government, which largely results in SMPEs' trans-ownership M&A failure in China.