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| A Study on M&A Premium Allocation Based on the Dual Scenarios of M&A Regulation and Minority Investors’ Attention |
| JIN Ying，ZHANG Xinmin，HAN Zixuan |
| 1. Zhejiang Gongshang University, Hangzhou, China; 2. University of International Business and Economics, Beijing, China |
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Abstract Taking A-share firms from 2012 to 2022 as a sample, this study utilizes both the regulatory tightening and minority investors’ attention on M&As as a dual setting to examine the issues of goodwill bubble extrusion and intangibles bubble formation during M&As after the exposure of goodwill risk. The research finds that, after the overall regulatory tightening of M&As in 2016, the greater the number of M&A-related questions asked by investors on interactive platforms, the smaller the increase in merged-in goodwill and the greater the increase in merged-in intangibles in public firms. Further tests reveal that the these two phenomena are more prominent in firms with serious agency problems, with major M&As, and with only one M&A, but show differences in firms involving affiliated M&As. Furthermore, firms exhibiting theses phenomena after 2016 do not have higher accounting performance, but have lower firm value after M&As, and are more likely to receive premium-related regulatory inquiry letters during M&As.
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Received: 22 February 2025
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