Government audit supervision and enterprise mergers and acquisitions

As an important part of the national political system, government audits play a significant role in supervising and restricting enterprises. Since 2010, National Audit Office China has repeatedly disclosed problems regarding enterprises’ M&A to prevent loss state-owned assets. This study takes listed companies controlled by central enterprises A-shares from 2008 2018 as sample investigate impact audit supervision on M&A. We find that reduces number scale M&As. Further research shows can reduce premiums affect payment methods. Finally, significantly improve short- long-term performance These findings show Chinese positively corporate governance, curbing M&As damage enterprise interests. provides micro-level evidence governance effect scientific decision-making