Research On The Influence Institutional Distance And The Innovation Performance Of Overseas M&A Corporations

As an important way of foreign direct investment,overseas M&A is an important way to promote the technology level of M&A enterprises.Making full use of overseas M&A as a leverage to obtain international technological resources has become an important source for Chinese enterprises to create and maintain competitive advantages in the global market,but in this process,it will encounter the common influence of many factors,such as institutional differences between home country and host country,corporate political ties and technological progress level of enterprises.Overseas M&A involves transnational situations,so it inevitably involves institutional issues.At present,from the perspective of institutional theory,there are different conclusions in the research on the related research problems by discussing the differences of national factors,such as institutional distance or institutional difference.Based on the new institutional theory and comparative institutional theory,this paper makes an in-depth study on the relationship between institutional differences and technological innovation performance of overseas M&A enterprises.Based on the data of overseas M&A in listed companies from 2010 to 2015,this paper empirically examined the relationship between institutional distance and innovation performance,also its transmission mechanism.The results show that,institutional distance has significantly improved innovation performance.Both formal difference and informal difference have significant positive effects on technological innovation.The acquirers' political connections and technological progress positively moderate the main effect.This paper offers some suggestion on technological innovation decision-making,and quickens the implementation of the "go global" strategy and encourages enterprises to invest and operate overseas.