Abstract
This study examines the effect of non-controlling shareholders’ network on the reliability of performance commitment (PC) agreements signed during merger and acquisitions (M&A), based on A-share listed companies in China during 2008–2022. Findings indicate that higher non-controlling shareholders’ network centrality is significantly associated with an increased PC reliability. Mechanism tests reveal that this correlation is driven by the network's embedded advantage to reduce M&A premiums and curb insider shareholding reduction. Furthermore, this study highlights that the networks of pressure-resistant institutional investors, non–state-owned legal entity shareholders, and individual investors play crucial roles in enchaining PC reliability.
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