The RegTech Edge: Digitalized SASAC Overnight and Mergers & Acquisitions
Prof. Jing XUE
Assistant Professor of Accounting, Department of Accounting, Xi’an Liverpool University
Date: 24 March 2025 (Monday)
Time: 10:00 – 11:30
Venue: E22-G015
Host: Prof. Rubin HAO, Assistant Professor in Accounting
Abstract
This study investigates the impact of regulatory technology in the M&A review process on the M&A performance. Leveraging the staggered implementation of the State-Owned Assets Supervision and Administration Commission (SASAC)’s SOEs Online Supervision System across its central office and 30 provincial branches between 2018 and 2021, we find that SOEs’ M&A transactions exhibit higher announcement returns, stronger post-merger operating performance, and a lower likelihood of goodwill impairment compared to non-SOEs following the system’s implementation. The impact is more pronounced in complex transactions that pose greater regulatory challenges, such as related-party deals, acquisitions of geographically distant target firms, and deals valued using the subjective “income approach”. We also document increased deal review efficiency and fewer CSRC comment letters on M&A transactions for SOEs after the system, suggesting that regulatory effectiveness and streamlined approval processes enabled by the system may drive the performance impact. Overall, by addressing regulator-firm information asymmetry and providing advanced monitoring tools, the system improves regulatory effectiveness in overseeing key investment issues among SOEs.
Speaker
Dr. Xue is an Assistant Professor of Accounting at Xi’an Jiaotong-Liverpool University. She obtained her PhD from Chinese University of Hong Kong. Prior to joining XJTLU, she worked at Nanjing University. Her research areas include corporate governance, financial intermediaries (e.g., analysts), and institutional investors. She has been PI of a National Science Foundation for Young Scholars of China and a Co-PI of Hong Kong RGC fund.
All are welcome!
