Examining sectoral differences and locational determinants of acquisition target selection at the sub-national scale: Evidences from China

The role of corporate mergers and acquisitions (M&As) in regional growth and industrial restructuring across spatial scales has been widely recognized, but the sectoral dynamics and locational determinants affecting subnational acquisition target selection remain underexplored. This paper aims to examine the changing network properties of interregional M&As in various sectors and relevant drivers within the Yangtze River Delta (YRD), an emerging global city -region in China. Based on a dataset of 5764 announced M&A events from 2001 to 2016, the descriptive results reveal that M&As were unevenly distributed across sectors and regions, with manufacturing M&As more dispersed to the peripheral areas (or suburban counties) and service M&As more concentrated in a few major cities. The modeling results suggest that the improved locational accessibility and weakened administrative segmentation have largely promoted the intensity of cross -regional M&A connections at the subnational scale. Place -specific attributes such as economic level, labor pool, innovative capacity, and policy setting still matter in acquisition target selection, but relevant roles varied across sectoral attributes of acquirers. The paper contributes to the understanding of the industrial dynamics and geographical mechanisms of M&As and their impacts on regional industrial restructuring within city -regions.