Research On Innovation Performance And Earning Persistence Of Technology M&A In High-tech Industry

In the context of the national innovation strategy and the construction of new development pattern,promoting industrial technological innovation,especially the technological innovation in high-tech industries dominated by strategic emerging industries,is the core of the national innovation-driven development strategy and an important way to achieve the national high-quality development goal.Enterprise technology innovation as the driving force of sustainable development of enterprises,enterprises with technology and knowledge assets become enterprises to participate in the competition the one of most critical resources both at home and abroad.According to the theory of competitive advantage and the theory of technological innovation,a country(enterprise)can enhance its unique and sustainable competitive advantage through technological innovation,so as to promote the sustainable growth of national economy and enterprise value.Therefore,technological innovation is often placed in the primary position of enterprises,especially high-tech enterprises.However,due to the fact that enterprises’ own innovation and research and development activities cannot quickly and fully meet the development needs of enterprises,technology M&A,as an important external technology innovation method,has developed rapidly in recent years,and technology M&A is mainly concentrated in high-tech industries and strategic emerging industries.The reason why enterprises carry out technology M&A is not only to obtain external technical resources,but also to improve their own R&D and continuous innovation ability,so as to make enterprises have sustainable core competitiveness,enhance the internal value of enterprises and the growth of wealth in the capital market.However,the existing literatures only focus on the impact of technology M&A on innovation performance,and there are few literatures on the impact of technology M&A on earnings sustainability,especially the research on the mediating effect of technology innovation on the relationship between technology M&A and earnings sustainability is relatively scarce.It ignores that technological innovation may play a mediating role in the impact mechanism of technology M&A on earnings sustainability,which can further transform the innovation performance of technology M&A into the sustained internal profitability of the enterprise,which is manifested as the stronger earnings sustainability characteristics of the acquiring companies after technology M&A.At the same time,through the function of signal transmission,efficient market and correlation of earnings value,technology M&A companies can also obtain the short and long-term wealth effect of capital market.To sum up,based on the important reality and practical background of technology innovation and technology M&A,the important impact of technology M&A on the intrinsic value and capital market value of enterprises,and the relatively weak theoretical research on the relationship between technology M&A and earnings sustainability by Chinese scholars,taking technology M&A as the main research object,this paper systematically constructs the theoretical logic transmission mechanism framework of "technology M&A-innovation effect(technology innovation performance)-earnings persistence-capital market response",and tries to investigate the following research issues in depth and systematically: The first,what is the innovation effect of technology M&A? Whether technology M&A can bring substantial innovation effect to high-tech enterprises,that is,whether the acquiring companies can really improve their own technological innovation ability through technology M&A.The second,how does technology M&A affect the earnings sustainability of acquiring companies? Whether technology M&A can play a mediating role through technology innovation has an impact on earnings sustainability.The third,what is the short and long-term capital reaction of technology M&A? Whether technology M&A can bring short and long-term wealth effects to acquiring companies through improving the correlation of earnings value.Firstly,this paper makes an empirical study on the innovation effect of technology M&A and reveals the heterogeneity of technology M&A and the difference of innovation effect and mechanism under different scenarios.In this part,the empirical inspection technology M&A will bring buy-out firms technological innovation effect(innovation output effect and innovation promoting effect),and whether the growth potential level of acquiring companies will have a moderating effect on the innovation effect of technology M&A is empirically studied,and further from two dimensions to distinguish between different types of technology mergers and acquisitions to test the effect of technological innovation.In the robustness test,this paper takes two robust testing methods.One is substitution agent variables and another one is to conduct robustness test based on PSM model and Heckman two-stage model.Finally,the property right nature,executive incentive,ownership concentration and knowledge innovation basis are differentiated to carry out an extended test.The results show that technology M&A can significantly bring about the output effect of technology innovation and the promotion effect of technology innovation.The higher the growth potential of the acquiring company,the more obvious the technological innovation effect brought by technology M&A;Compared with technology entry M&A,technology consolidation M&A can bring more significant technology innovation effect to the acquiring companies,while there is no significant difference in the technology innovation effect between domestic and cross-border technology M&A;Only in one year after M&A,there is a significant difference in the promotion effect of technological innovation under different scenarios.Secondly,this paper studies the impact of technology M&A on earnings persistence-based on the test of the mediating effect of technology innovation and reveals the influence mechanism and action mechanism of technological m&a on earnings persistence through technological innovation performance path.In this part,the paper focuses on the impact of technology M&A on earnings persistence of acquiring companies,and tests whether the impact of the former on the latter is mediated by technological innovation performance,and whether the mediating effect is moderated by the growth potential of acquiring companies.And further according to the property right nature,the growth of the enterprise and executive incentive to carry out the expansion test.In the robustness test,this paper takes two robust testing methods.One is dual substitution agent variables and another one is to conduct robustness test based on PSM model and Heckman two-stage model.The results show that technology M&A can significantly improve the earnings persistence of acquiring companies;Technology M&A significantly improves the two dimensions of technology innovation performance,and through the mediating effect of the two dimensions of technology innovation performance,and then improve the earnings persistence of the acquisition companies;The mediating effect of technological innovation performance is also moderated by the growth potential of the acquiring firm.There are significant differences between SOE and non-SOE in the mediating mechanism of the relationship among technology M&A,technology innovation performance and earnings persistence.The mediating effect of technology innovation performance on earnings persistence of technology M&A is significantly established in non-SOE and enterprises implementing executive incentives.There are significant differences between SOE and non-SOE,between enterprises that implement executive incentive and those that do not implement executive incentive,in the mediating mechanism of the relationship among technology M&A,technology innovation performance and earnings persistence.The technology acquisition of enterprises with different ownership concentration can play a mediating role through technological innovation performance and improve the earnings sustainability of enterprises,but there are differences in the mediating transmission path between the two groups.The high ownership concentration group improves the earnings sustainability of the acquisition companies through technological promote performance.However,the low ownership concentration group improves the earnings sustainability of acquisition companies through the technological output performance.Finally,this paper expands the short and long term capital market reaction caused by technology M&A and the moderating effect of analyst tracking on short and long-term capital market reaction to technology M&A is also tested,which reveals the difference and mechanism of the heterogeneity of technology m&a on the short and long term capital market reaction,and verifies the impact of technology M&A on earnings value correlation.In this part,the short and long-term capital market reactions caused by technology M&A are further expored.The short window CAR model and the long window BHAR model of event study method is used to study the short and long-term capital market reaction caused by technology M&A,And further examine in detail the difference of short and long term capital market reaction caused by different types of technology M&A.In the robustness test,changing event window periods are constructed to test the short-term capital market response of technology M&A.The future earnings response coefficient(FERC)model is constructed to test the long-term capital market response of technology M&A and verify the impact of technology acquisition on the correlation of earnings value.The study found that technology M&A is significant to bring the short and long-term market reaction of capital market.Analyst tracking has a significant moderating effect on the short and long term capital market reactions to technology M&A.The difference between technology entry and technology consolidation M&A has a significant impact on the short and long-term capital market reaction.Technology consolidation M&A are more favored and valued by long-term capital market participants.The domestic technology and cross-border M&A,there is no significant in the short and long-term market reaction.Technology m&a significantly improves the correlation of earnings value.This paper systematically analyzes and constructs the theoretical logic transmission mechanism framework of "technology M&A-innovation effect(technology innovation)-earnings persistence-capital market reaction".Based on the intermediary perspective of technological innovation,this paper studies the impact mechanism of technology M&A on earnings persistence.It provides new empirical evidence for theoretical research on prior technology merger and acquisition and earnings persistence,enriches and improves the existing relevant theories.In the study of the long-term capital market reaction of technology M&A,this paper verifies the influence of technology M&A on the correlation of earnings value,reveals the transmission mechanism of the long-term capital market reaction of technology M&A,and extends and expands the theoretical research on the capital market reaction of M&A announcement.At the same time,through the research of this paper,it can provide theoretical guidance and reference suggestions for listed companies to how to choose technology M&A,and improve the effectiveness of listed companies’ M&A decision-making.It can provide investors with a comprehensive understanding of the relationship between technology M&A and innovation,between technology M&A and corporate value and market value,and provide valuable references for them to make effective investment decisions.It also can provide industrial policy guidance for the relevant government departments and help the government to issue corresponding innovation incentive policy and preferential taxes policy,and guide strategic emerging industries and high-tech industries to promote their rapid technological transformation and upgrading through technology M&A,and constantly improve their independent innovation capabilities,so as to truly realize the innovation-driven growth model of connotation,and maintain the healthy and sustainable development.