Too Much of a Good Thing? The Impact of Serial M&A on Innovation Performance

Xiaoxu Zhang, Yu Song () and Hongyu Liu ()
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Xiaoxu Zhang: School of Business Administration, University of Science and Technology Liaoning, Anshan 114051, China
Yu Song: School of Business Administration, University of Science and Technology Liaoning, Anshan 114051, China
Hongyu Liu: School of Business Administration, University of Science and Technology Liaoning, Anshan 114051, China

Sustainability, 2023, vol. 15, issue 12, 1-23

Abstract: Based on the sample of serial M&A of Chinese listed companies from 2010–2019, this paper intends to investigate the impact of serial M&A on innovation performance and the impact of financing constraints and digital inclusive finance (DIF). The empirical results show that an inverted U-shaped relationship exists between serial M&A and innovation performance that first goes up and then goes down. The results of mechanism analysis show that financing constraints play a mediating role in the inverted U-shaped relationship between serial M&A and innovation performance, while DIF plays a moderating role in the mediating effect of serial M&A on innovation performance through the financing constraint. The heterogeneity analysis finds that the inverted U-shaped relationship between serial M&A and innovation performance is more significant in firms with non-state ownership property, a higher business environment index, and medium and large-scale firm size. The research results not only help to promote the in-depth analysis of the impact of serial M&A on innovation performance, but also help to provide targeted theoretical reference and practical guidance for corporate management decision making.

Keywords: serial M&A; innovation performance; financing constraints; DIF (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
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