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| Political Connections, Conglomerate Diversification and Acquisition Performance |
| WEI Wei，ZHU Qingyuan，LIN Guiping |
| 1.Peking University HSC Business School, Shenzhen, Guangdong, China; 2. Roland Berger Enterprise Management (Shanghai) Co. Ltd., Shanghai, China; 3.Shenzhen Yuanzhi Business Model Research Institute, Shenzhen, Guangdong, China |
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Abstract This article makes a comprehensive study on the relationship between political connections and acquisition performance. The relationship is investigated from the following aspects: the general effect of political connections on acquisition performance; the different effects of political connections on SOEs and private enterprise’s acquisition performance; the combined effect of political connections and conglomerate diversification on acquisition performance. Our findings show that political connections have a negative effect on acquisition performance；political connections have a significant negative effect on acquisition performance of SOEs, but less negative effect on private enterprises’; companies with political connections have better acquisition performance than those without political connections when they are making conglomerate diversification, and this positive effect performs better on private enterprises.
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Received: 11 April 2016
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2017, Vol. 14 
