The Influence Of Mergers And Acquisitions On Enterprise R&D Investment

In the fierce competition in the market of the world, knowledge and innovation have become the lifeblood of enterprises to be survival and to achieve development. Innovation is the source of all of the things, it can maintain a lasting competitive security for an enterprise. Mergers and acquisition have been concerned by more and more enterprises as a quick way of gaining innovation sources from outsides. Mergers and acquisition have made a outstanding contributions for enterprises in providing a large number of R&D personnel and scarce resources. Therefore, M&A activity among enterprises is increasing, forming a competing beyond trend.Based on previous studies, combined with the current M&A research and focus on the field of mergers and acquisitions in the past, conducted empirical research. In the current domestic and international research, mostly focus on the factors affecting R&D investment. For example, the impact of government policies on R&D investment, the impact of firm size on R&D investment and the impact of the nature on R&D investment is representative. There are few scholars study the impact of M&A on R&D investment. Research related to mergers and acquisitions has mostly focus on the impact of factors, few articles from perspective of mergers and acquisitions to study R&D. This article will be broken down into different types of mergers and acquisitions, and separately analysis the effects of different types of mergers and acquisitions for corporate R&D investment. Meanwhile, according to the resource-based theory and knowledge spillover theory, research the impact of mergers and acquisitions of R&D activities. This differs from the previous transaction cost theory, in a concern sense to enrich the existing theory connotation. Resource-based theory emphasizes access to technical resources, marketing and human resources. Absorption and utilization of knowledge is important. From the perspective of knowledge spillover, knowledge spillovers affect the structure and amount of knowledge and R&D decisions. Knowledge spillover phenomenon is very frequently in the mergers and acquisition corporate. Merger parties have the opportunity to contact and use new knowledge. In this case, companies enhance the ability of learning, innovation frequently.This empirical results show that mergers and acquisition can promote corporate R&D investment. Specifically, compared to diversified acquisitions, related mergers and acquisitions can promote R&D investment better; compared to non-high-tech enterprises, high-tech enterprises can promote R&D investment better; compared to state-owned enterprises, non-state-owned enterprises can promote R&D investment better. Finally, according to the empirical results and the actual situation of the current market, this paper presents some suggestions to promote the mergers and acquisitions and R&D investment.