Abstract: Given the weakening expectation of corporate growth against the backdrop of supply shock, demand contraction and lowering expectations, this paper takes Chinese A-share listed enterprises in 2017—2019 as the research object, and empirically studies the impact of growth expectations on corporate M&As and the mechanism underlying the impact. The study shows that: (1) the weakening expectation of corporate growth intensifies M&A activities; (2) the intensification is realized mainly through moderate debt expansion; (3) by intensifying M&As, the enterprises exposed to weakening growth expectation suffer less fluctuations in operating performance and achieve a significant increase in total factor productivity; (4) the influence of weakening growth expectation on M&A activities is more significant in mature and private enterprises. This paper enriches the research on the influencing factors and economic consequences of M&A activities, and provides empirical evidence and policy inspiration from the perspective of stable expectation for M&A behavior.

Key words: growth expectations, corporate mergers and acquisitions, risk taking