Abstract: The main purpose of building a unified national market is to promote the smooth flow of factors on a larger scale. Cross regional mergers and acquisitions are a form of capital flow across regions. Based on the merger and acquisition data of Chinese A-share listed companies from 2011 to 2023, this study examines whether non controlling major shareholders from outside the company’s registered location can help companies break through barriers to cross-border mergers and acquisitions. The findings show that major shareholders in different regions can significantly increase the probability of a company implementing mergers and acquisitions in the location of the major shareholder. Moreover, when the major shareholders in other regions are state-owned, have a long operating period, and the appoint directors or their executives to work part-time in other local enterprises, this promoting effect is more pronounced. The mechanism testing shows that the reason why major shareholders in different regions promote cross-border mergers and acquisitions is that they have local market information advantages and social network resources. The expansion analysis reveals that promoting cross regional mergers and acquisitions by major shareholders can enhance the long-term value of the enterprise. To this end, enterprises need to leverage the information advantages and social network resources of the major shareholders in different regions to build long-term competitive advantages.

Key words: nonlocal large shareholders, inter-regional M&As, cross-regional capital flows, social capital, resource effect