Empirical Research On The Motivation For Cross-border M&As And Innovation Performance

In the autumn of 2013,General Secretary Xi Jinping proposed "the Belt and Road Initiative",which became an important concept for promoting the common development and win-win cooperation between China and the world in the new era.Under the background of "the Belt and Road Initiative" and "going globe" strategy which was proposed after China joined the WTO in 2000,the number of cross-border M&As in China is on the rise.Cross-border M&As could be characterized by two types of differentiation according to their motivations.One is traditional assets-seeking cross-border M&As,which aim at acquisition of tangible assets such as natural resources and financial resources,and the promotion of internal productivity of the leading enterprise under the background of macroeconomic policy.This kind of cross-border M&As has the same characteristics of traditional cross-border mergers and acquisitions in Europe and the United States.The other is strategic assets-seeking cross-border M&As,which aim at high-quality technical resources in the international market and reversing the acquisition of strategic assets in the absence of international competitive advantages.the Chinese enterprises In this kind of transactions,the Chinese enterprises break through the traditional cross-border M&A model,avoiding intellectual property barriers and technical blockades of foreign governments,actively acquiring key assets of mature companies in developed countries.Innovation is the soul of an enterprise.Under the background of policy-driven opening and economy entering a new normal,the evaluation of cross-border M&As of Chinese enterprises only from financial indicators such as M&As performance can not fully reflect the long-term potential of enterprise development.We need to stand at the strategic height of future development of enterprises and evaluate the effectiveness of cross-border M&As with innovation as the entry point.The innovation effect of M&As is an important issue for foreign scholars to study the impact effect of overseas transactions.As a model to promote the redistribution of resource control rights among enterprises to make resources more effective,M&As can affect the scale and positioning of enterprise innovation activities after mergers and acquisitions.Based on this,in the context of the rapid growth of cross-border M&A events in China in recent years,this paper uses the cross-border M&As data of listed companies in China's Shanghai and Shenzhen stock markets from 2007 to 2016,from the theory of knowledge-based theory,springboard perspective,and network expansion theory.The perspective focuses on the impact of two types of cross-border M&A motivations on the innovation efficiency of enterprises after transactions,and explores the moderating effect of internal and external sources of information based on empirical theory,identification mechanism,and signal transmission theory.The participation of external investment banks plays a role in regulating the relationship in transactions.Therefore this paper proposes three hypotheses.The research results show that compared with enterprises with the traditional asset-seeking motivation,enterprises with strategic asset-seeking motivation will significantly promoted the innovation efficiency of enterprises after transactions;Furthermore,it is found that in the process of M&A transactions,internal and external information significantly positively moderates the relationship between cross-border M&A motives and corporate innovation performance,and enterprises with strategic asset-seeking motivations significantly promoted with internal internationalization experience.Enterprises with strategic asset seeking motivation will further enhance the phenomenon of innovation performance with investment banks participating in their transactions.Finally a group test was carried out based on the nature of corporate ownership,and it was found that the relationship between cross-border M&A motivation and enterprise innovation performance showed a certain degree of differentiation under different enterprise ownership situations.This relationship is not significant in the grouping of state-owned enterprises.Cross-border M&A is an important manifestation of Chinese enterprises' response to the "Belt and Road Initiative".It is of great significance to analyze cross-border mergers and acquisitions from the perspective of motivation.The existing research on cross-border mergers and acquisitions of Chinese enterprises mainly focuses on the completion or not or the economic value creation of M&As.Few articles focus on the consequences of cross-border mergers and acquisitions of Chinese companies from the perspective of innovation activities.The research of this paper has certain theoretical significance and practical value.The innovation points of this paper have the following aspects:First,the research conclusions of this paper enrich and expand the research on the relationship between corporate foreign investment and innovation performance.Under the analysis paradigm of "Motivation-Behavior-Performance",this paper breaks through the micro-view of the original analysis paradigm and discusses the cross-border M&A motivation and cross-border M&A decision from the macroscopic,to micro level.The intrinsic influence mechanism between innovation and performance,the study of cross-border M&As behavior under two kinds of motivations extends from the perspective of economic consequences to the management perspective that can deeply explore its process mechanism.The conclusion of this study is the original analysis paradigm.A supplement is also a further refinement of research on foreign investment by Chinese companies.Secondly,from the perspective of cross-border M&A transactions participants,this paper regards cross-border M&A as a high-risk information asymmetric investment behavior,breaking through the limitations of existing research based on the homogeneity hypothesis of enterprise participants,and exploring enterprises.The dynamic impact of changes in internal and external information on the relationship between cross-border M&A incentives and corporate innovation performance,which complements the internal M&A experience in M&A transactions and the signal theory of external investment bank reputation in a specific context,constitutes financial The organization's contribution to the literature on mitigation of information asymmetry in mergers and acquisitions,and provides an intermediary for the selection and hiring decision-making of intermediaries in China's cross-border M&A practice and related investment experience.