This paper, taking the directors of listed companies as point of penetration, studies the effects of\ninterlocking directorates on the company�s merger decisions. With a focus on interlocking directorates�\ninfluence on the selection of M & A targets, a Probit regression test was conducted by\npairing potential M & A targets to real acquisition sample according to the industry of the real\nsample. The innovation of this paper lies in the study of whether there is a significant difference in\nthe effect of interlocking directorates through differentiating various M & A modes, including horizontal\nmergers, vertical mergers and mixed mergers. The empirical analysis concludes that when\nthere are interlocking directorates in merger company and potential target company, it is more\nlikely for the potential target to be the object company. What�s more, by comparison, when the\nacquiring company and the target company are from different industries, there is greater impact\nof interlocking directorates, and the effects are stronger in vertical mergers than in mixed mergers\nand horizontal mergers.
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