Abstract
The current evaluation of M&A performance lacks consideration of M&A motives. In this paper, we theoretically analyse and empirically test the effect of network synergy generated by M&A on the degree of realization of corporate M&A motives and the mechanism of its effect by constructing an equity network between a listed company and its subsidiaries within the company. The results show that the greater the variation of internal network node degree and strength, the more beneficial it is to promote the degree of realization of corporate M&A motivation; the results of further mechanism of action tests show that the variation of network node degree and strength has significant effects on economies of scale, economies of scope, and transaction costs; Furthermore, the heterogeneity test finds that the effect of variation of network node degree and strength to promote the degree of realization of corporate M&A motivation is more significant in the case of non-cash payment method and related M&A. This paper extends the study of complex networks to the field of M&A and uniquely explains the paradox of the "high failure rate" of M&A and the increasing activity of M&A activities from the perspective of network synergy, which helps to rationalize the M&A behavior of enterprises and further regulate the M&A behavior of listed companies by regulatory authorities.