Research on the impact of enterprise mergers and acquisitions on technological innovation: An empirical analysis based on listed Chinese enterprises

Yujiao Bai and Hao Zhang

PLOS ONE, 2024, vol. 19, issue 11, 1-24

Abstract: As an important means for enterprises to acquire technological resources, the impact of mergers and acquisitions on technological innovation and underlying mechanisms deserve in-depth study. Using the merger and acquisition data of A-share listed Chinese companies from 2007 to 2020 in Shanghai and Shenzhen, the causal effects and influence mechanisms between mergers and acquisitions and technological innovation are identified and tested using the Difference-in-Differences method. The study finds that mergers and acquisitions have a long-term, sustained, technological innovation-enhancing effect on firms. Mechanism tests show that mergers and acquisitions can promote the technological innovation of enterprises by improving production efficiency, enriching digital knowledge, and enhancing market power. A heterogeneity analysis shows that the effect of mergers and acquisitions in enhancing technological innovation is more significant when the mergers and acquisitions meet domestic merger and acquisition requirements, when there is a small transaction size, and when the enterprises involved in the mergers and acquisitions are not state-owned. It is suggested that enterprises and the government should use multiple measures, while considering the impact of heterogeneity, to take full advantage of the positive effects of mergers and acquisitions on technological innovation.

Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0309569 (text/html)
https://journals.plos.org/plosone/article/file?id= ... 09569&type=printable (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:plo:pone00:0309569

DOI: 10.1371/journal.pone.0309569

Access Statistics for this article

More articles in PLOS ONE from Public Library of Science
Bibliographic data for series maintained by plosone ().