The Effects Of M&A On The Acquirers' R&D

Only improving innovation ability is the key of solving the economics problems of the world and China.This study focused on micro foundations and discussed the relationship between M&A and R&D,which are two ways to affect a company's innovation abilities.I summarized the related theoretical and empirical researches and described a company's R&D by three indicators--investment intensity(RDt,t),relative outcomes(Patenti,t)and efficiency(Avei,t).Then I used data of Chinese listed companies of 4 high technology industries from year 2010 to 2016 to make an empirical analysis.This study used the procedure of fixed-effect model and PSM-DID,so it reduced the effects of sample-selection bias,omitted variables and reverse causality.This study found that M&A has no significant effect on acquirers'R&D on the whole of 5 years after M&A.But chronologically,the R&D intensity has the trend from decreasing to getting back after M&A.For service industries of high technology,M&A could make relative outcomes of R&D increase gradually and stabilize R&D efficiency at a low level.For manufacturing industries of high technology,M&A could make relative outcomes of R&D decrease gradually and magnify the fluctuation of R&D efficiency.So,the government should make differentiated policies based on different industrial characteristics and encourage high technology companies to invest more on R&D.They should broaden financing channels for acquirers and decrease the costs of M&A that has the effect of resource integrations.Also,we should focus more on setting up long-term mechanisms for the efficiency improvements and resource integrations after M&A and pay more attention to high technological staffs and commercialization of patents.So the innovation abilities could truthfully promote the development of the company.This study supplemented Chinese literature of the relationship between M&A and acquirers' R&D.And it also provided basis for the policy making of M&A and R&D.