The Impact Of Technological M&A On Innovation Performance Of Chinese High-tech Listed Companies

With the development of economic globalization, China has been gradually integratedinto the international division of labor, and has certain advantages in the manufacturingsectors. However, considering the ever-changing world economic situation, rising costs,increasingly intensive international competition, a lot of Chinese manufacturing enterpriseswhich rely on simple processing and exporting are faced with tremendous pressure to survive.Improving the innovation capability has become an effective way for Chinese enterprises.Considering the rapid development of science and technology, companies all around theworld have to seek external access to technologies to improve the innovation capabilitybesides making its own technology research. In all the access to external advanced technology,the technological acquisition which has unique advantages, is an effective way to win ininternational competition.To take advantage of the mature Technological M&A theory in the developed countriesthe practice of our country, we must consider the special circumstances of China. The marketis undeveloped and ineffective in protecting the interests of minority shareholders; due to thecommon dominant place of the controlling shareholder in the listed companies, it’s normal forthem to take advantage of the minority shareholders through M&A. Although technologicalacquisitions are motivated by technology, they are also influenced by the tunneling motivationof the controlling shareholder. However, there is no similar research in China that take all thefactors of technological M&A, equity structure and innovation performance into account.This article focuses on technological mergers and acquisitions in high-tech listedcompanies, to find out the impact of technological M&A on innovation performance and therole of ownership structure in the process. Through empirical analysis, it’s found thattechnological M&A has a significant positive and lagged impact on innovation performance;the positive impact of technological M&A is negatively influenced by the controllingshareholder; the controlling shareholder, on high and low level of shareholding, reflects themoat defensive effect, which means that the higher the stake of the controlling shareholder, the worse the results of technological mergers and acquisitions-the innovation performance;there’s no significant effect of the rest of the major shareholders on innovation performance;managers who has stake of the company hasn’t played a significant role on the innovationperformance; the absolute knowledge base of the target company in the technological mergersand acquisitions has a significant positive effect on innovation performance.According to the empirical results, this paper suggest that the government reduce the taxburden and optimize the environment for innovation of small and medium-sized technologycompanies and encourage their innovation; this paper also suggests the government toencourage and support large firms to acquire technology by technological M&A; this paperalso suggest the government to continue deepening the reform of the stock market, to improvethe dominance of the ownership structure, and to give more protection to small and mediuminvestors.