LAUSR

Abstract Based on Chinese firm-level panel data in energy and electric power industries from year 2007 to 2018, we adopt panel data OLS regression model to empirically study the impact of geopolitical risk (GPR) on mergers and acquisitions (M&A). We find that GPR significantly promotes M & A, and GPR significantly positively affects M & A through possible mechanisms of real option and prospect synergy effect. Further researches indicate that debt ratio and ownership property attenuate the positive influence of GPR on M&A. Instrumental variable and other robustness tests still stand on our results.