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Abstract Organizational slack is the actual or potential resources available that could be redeployed， and its liquidity level will influence M&A decisions of cultural enterprises. Based on M&A events initiated by the A-share cultural and media companies listed in Shanghai and Shenzhen from 2014 to 2019 and considering the internal and external situational factors， along with the characteristics of cultural enterprises， this paper analyzes the relationship between organizational slack liquidity and M&A decisions of cultural enterprises. Results show that the level of organizational slack liquidity is positively correlated with the willingness of implementing M&A， as well as the M&A size and frequency. The higher the liquidity level is， the more likely cultural enterprises are to carry out M&A， make larger transactions， and more inclined to proceed continuous M&A. A further study on M&A transaction designs shows that organizational slack liquidity promotes the use of cash payment to complete transactions and increases the M&A premium level. Under the circumstance of low financing constraints and high management autonomy， the allocation and utilization of slack resources is more dynamic and has a greater degree of freedom. The research conclusions expand the research literature by showing that organizational slack affects M&A decisions of cultural enterprises from the perspective of liquidity， and can provide practical inspiration for cultural enterprises to manage organizational slack and make M&A investment decisions.
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Received: 25 July 2022
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2022, Vol. 61 
