Industry‐Specific Information Disclosure and M&A Performance: Evidence From China

The industry information environment is crucial for the resource allocation efficiency of the real economy. We examine the impact of industry‐specific information disclosure (ISID) on firms' merger and acquisition (M&A) performance. Considering the staggered implementation of mandatory ISID guidelines across industries by Chinese Stock Exchanges since 2015 as a quasi‐natural experiment, we employ a staggered difference‐in‐differences (DID) design to examine its effect on the performance of firms' M&A. Our empirical results show that ISID has a significant positive effect on M&A performance. Channel analysis shows that ISID enhances M&A performance by reducing the information costs and agency costs of acquirers. The heterogeneity analysis indicates that the positive effect of ISID on M&A performance is more pronounced in industries with higher information sensitivity, industries with greater market attention, and in cases where both acquirer and target firms operate within the same industry. The effect is also stronger among firms with weaker corporate governance and in state‐owned firms. Overall, our study demonstrates the impact of mandatory ISID on the efficiency of resource allocation in China from the perspective of corporate M&As. This study provides implications for regulatory authorities to refine information disclosure systems, thereby improving resource allocation efficiency.