Marketization level, government intervention and firm M&As: evidence from the local SOEs in China

The state-owned enterprises (SOEs) in China are commonly criticized due to their decision-making being intervened by the government. In this article, we present that the marketization level restrains the local government's intervention in the local SOEs' mergers and acquisitions (M & As); and the restraining impact is enhanced in the local SOEs, especially on their diversified M&As, when the government possesses stronger power in the firms. The article sheds lights on theories of market segmentation and government intervention in an emerging economy where interventionist governments commonly exist.