减税政策与 融深化对国内并购活动的影响：中国 新技术产业

xport-led economy that hasseen a reallocation of agricultural employment to manufacturing and services, highsupply of labour and thus low labour costs. Nonetheless, in recent years China has gonethrough a shift in economic structure, directing itself more towards high-endmanufacturing and services. This upgrade from textile and agricultural products tohigh-tech exports comes from different factors: (i) a climb up in global value chains;(ii) an increased share of wholly-foreign owned enterprises; (iii) the adoption ofpolicies favoring high-tech zones; (iv) and an increased supply of skilled workers(Wang, 2018). The general pictures seems to be that China exports more in high-techgoods but China is increasingly involving more in the global participation of high-tech industry production. Reason being is that despite the recent slowing down of itseconomy, China keeps directing its investments towards technology and innovation.The Chinese government is boosting investments in R&D, high-tech industrial parksand incubators in order to achieve the so-called Made in China 2025 plan and acceleratetechnological developments of 10 key sectors. These key sectors recipient of theseinvestments include amongst others: information technology, robotics, oceanengineering, aerospace, electrical and medical equipment, new-energy car and newmaterials (Charlton, 2019; The State Council of The People's Republic of China, 2015).

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2.2 China’s stand in the M&A marketplace

Recent studies on Asian M&A illustrate how strongly companies in the region emergedout of the crisis. Because the Asian financial market was not as developed as otherregions, the 2007 crisis did not have a direct impact on this market. In the first half of2008 a 24% growth in M&A transactions was recorded showing little signs of thisimpact. There was confidence that governments’ economic measures and Chineseeconomic growth would have helped M&A activity to recommence. At the time of thecrisis the top three industries which attracted most M&A deals were manufacturing,financial services and mining and metal. These trends changed right after both financialregulation and fiscal policy were issued in 2008 (PwC, 2011). Investments started paymore attention towards the media, textile and infrastructure industry and records ofChinese M&A activity were documented in 2010. The three years after the crisisrevealed moderate improvements with both confidence and investors hope showingpositive signs in 2011. Asian companies’ acquisition power played a substantial role indifferentiating their appearance compared to Western peers in these weaves ofconsolidation.

Figure 5: 2008-2018 M&A Number of Deals in China

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CHAPTER 3: METHODOLOGY AND SAMPLE OVERVIEW ................... 34

3.1 Methodology of thesis ...................................... 34

3.2 Data presentation and method of data collection.............................. 36

CHAPTER 4: EMPIRICAL RESULTS.......................... 37

4.1 Financial deepening ........................ 38

4.2 Tax cut reform.............. 38

CHAPTER 5: CONCLUSION AND RECOMMEDATION ................... 41

CHAPTER 4: EMPIRICAL RESULTS

4.1 Financial deepening

The results support our hypothesis that financial deepening represented by a developedstock and debt market is positively related to M&A expense value of companiesengaging in corporate acquisitions. The coefficient of stock market capitalization ispositive and significant where an increase in 1% in the stock market capitalization isassociated with 0.822% increase in M&A expense value. The value of bond marketcapitalization is also showing positive and significant but smaller than stock marketcapitalization. An increase of 1% results in a 0.433% increase in the value of ourdependent variable. Chinese stock and bond market openness provided thus the capitalnecessary for those companies to pursue merges and acquisitions and acquire thenecessary te