Mergers And Acquisitions Behavior,Financing Constraints And Investment In Enterprise Innovation

As China’s economic development enters a new normal,innovation plays an increasingly important role in economic growth and improving the competitiveness of enterprises.Enterprises are the main body of innovation activities,and the improvement of their innovation ability has a direct impact on the smooth implementation of innovation-driven development strategy and the successful transformation of an innovation-driven country.Therefore,how to stimulate the R&D enthusiasm of enterprises and improve their innovation ability has become the focus of current attention.Existing theories and case studies have shown that M&A have a good incentive effect on innovation.Through M&A,enterprises can integrate the technology and market resources of both parties and absorb R&D talents,which is conducive to the improvement of enterprise innovation ability.However,enterprise innovation cannot be separated from the investment of R&D capital.The characteristics of R&D investment itself,such as long period and high risk,and the capital mismatch in China’s credit market lead to and aggravate the financing constraints of innovative R&D enterprises,which will have a negative impact on enterprise innovation,and in the long run will also affect the innovation incentive effect of M&A.In general,high financing constraint enterprise M&A will be cautious behavior,because its purpose is to improve the enterprise management status,and according to the theory of internal capital markets and corporate communications theory,M&A behavior would be to build a firm’s internal capital market and effectively reduce the information asymmetry,so as to ease the financing constraints,this will ease the financing constraints,the negative impact on innovation research and development,finally is advantageous to the enterprise innovation;For low financing constraints,because itself has relatively abundant cash flow,according to the theory of free cash flow hypothesis or overconfident managers tend to under agency conflict under the excessive investment or overconfidence of blind investment,make the technical resources and the integration of research and development personnel risk,it will not conducive to enterprise innovation.Therefore,from the perspective of financing constraints of master merger enterprises,this paper will discuss the different impact of M&A of enterprises with different levels of financing constraints on innovation incentive effect,and then conduct group research on merger enterprises according to different ownerships and regions.This paper,by using 2013-2017 Shanghai and Shenzhen a-share market data of listed companies,by R&D strength,enterprise innovation level and build enterprise financing constraint index,through regression analysis of M&A fixed effects model influence on enterprise innovation,and master and enterprise financing constraints for the innovation of the merger incentive effect of the differences between,and examines the innovation incentive effects in different ownership and area of main and heterogeneity in the enterprise.The results show that M&A has a significant positive impact on R&D investment intensity,and the impact has a certain persistence.Although the financing constraint inhibits the R&D investment intensity of firms,the innovation incentive effect of firms with high financing constraint through M&A is greater than that of firms with low financing constraint.For enterprises of different ownership and heterogeneity analysis found that: state-owned enterprise M&A behavior for the promotion of enterprise innovation role is only effective in the short term,unable to have the innovation incentive effects of long-term,while the M&A behavior of non-state-owned enterprises can cause a relatively sustained incentive effect on innovation,it can also reflect the non-state-owned enterprises in M&A market activity is extremely high.To master and enterprise heterogeneity analysis found that different regions of the eastern region enterprise through M&A can produce significant innovation incentive effect,the effect with strong continuity,and the Midwest enterprise cannot promote innovation through acquisitions,it is related to both the differences of the industrial structure,the eastern region is innovation-driven development model transformation,and the central and western regions is still is in a state of bearing the traditional industry transfer,M&A is not the purpose of innovation ability in order to ascend.The research of this paper enriches the research on the mechanism of M&A promoting enterprise innovation,and provides some reference considerations and policy suggestions for the inter-enterprise M&A and technological innovation activities in the context of China’s economic reform entering the deep water zone and the urgent economic transformation.At the government level,relevant departments should continue to deepen the reform of "delegating power,delegating regulation and providing services",promote the institutional reform of state-owned enterprises and the supply-side structural reform,provide a favorable economic environment for enterprise M&A activities,and increase preferential policies in taxation and financing for enterprises.From the perspective of enterprises,they should restrain and prevent the abuse of free cash flow and overconfidence by senior executives.They should not blindly carry out M&A in pursuit of short-term improvement of innovation effect,but should formulate forward-looking M&A plans.