Research On The Relationship Between M&A And Innovation Performance Based On The Synergy

With the development of eco nomy,the voice that China's future focus should be changed from manufacturing to science and technology is growing louder and louder.However,at present China still have many serious problems in some industries,such as the weak ability of innovation,th e repeated construction of the industry and the low concentration of the industry.In March 2014,the State Council put forward a proposal to optimize the merger and reorganization of enterprises.T he proposal pointed out that mergers and acquisitions can strengthen the resource integration of enterprises and improve the ability of innovation.So the strategy of M&A can enhance original innovation performance of enterprises.Therefore,enhancing innovation performance through M&A has attracted more and more attention of the community.The existing research on the relationship between M&A and innovation performance is far less than other research on M&A.Among those studies,most of them are foreign research and the industrial background of the problem is almost Britain and America.So these studies have limited implication for Chinese enterprises.T herefore,the purpose of this paper is to study the relationship between M&A and innovation performance under the background of China's own industries.Because acquiring company and target company have different motives of mergers and acquisitions and different M&A performance,this paper will divide Chinese enterprises into two categories for comparative study.In addition,the obviously differen ce between the indu strial environment of China and other countries is that state-owned enterprises play a special role in the merger and acquisition strategy.Therefore this paper will investigate whether state-owned enterprises will have an impact on the relationship betwee n M&A and innovation performance.B esides since different enterprise scale will cause different synergistic effect,it can produce different enterprise performance.So this paper will analyze the moderating effects of enterprise scale for the relationship between mergers and innovation performance.Based on the literature review and theoretical analysis,this paper constructs the Logit model and DID model for empirical analysis.Samples of this article are selected from Shanghai and Shenzhen A shares listed company.T he results show that innovation performance is positively correlated with the probability of M&A,that there is no significant correlation between M&A of acquiring company and innovation performance,that there is significant positive correlatio n between M&A of target company and innovation performance,and that the scale of the enterprise and the nature of state-owned enterprises have moderating effect s on the relationship between M&A and innovation performance of target company.The above results may be explained as follows.T he acquiring company has both synergistic effect and integration issues,and then the positive and negative effects offset each other.Therefore,it leads to the insignificant relationship between M&A and innovation performance.However,target company only ha s synergistic effect and does not need to consider the complex integration issues,so the significant relationship between M&A and innovation performance exists.According to the research results of this paper,this pap er puts forward some suggestions: If enterprises want to high innovation performance after M&A,they should speed up the integration process of enterprises and actively promote the synergistic effect of internal and external technical resources.