{"title":"Do diversified M&As improve R&D activity? Evidence from Chinese listed companies","authors":"Songsheng Mao , Gongyan Yang","doi":"10.1016/j.frl.2024.106465","DOIUrl":null,"url":null,"abstract":"<div><div>Using the sample merger and acquisition (M&A) data of China's A-share listed companies from 2007 to 2022, this study adopts the multiphase difference-in-differences (DID) methodology to examine the heterogeneity of diversified M&A activities and their effects on enterprise innovation efficiency. Findings indicate that diversified M&As hinder the advancement of firms’ innovation efficiency. Diversified M&As have a heterogeneous impact on enterprise innovation. Specifically, young enterprises, enterprises with limited cash flow, and enterprises in highly competitive industries experience a greater negative impact on innovation efficiency. Furthermore, long-term diversified operations with minimal business changes and a substantial decrease in leverage ratio harm innovation efficiency. These conclusions broaden the understanding of M&A's innovative effects and provide a practical foundation for domestic enterprises’ M&A decision-making.</div></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"72 ","pages":"Article 106465"},"PeriodicalIF":7.4000,"publicationDate":"2024-11-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Finance Research Letters","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S1544612324014946","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 0
Abstract
Using the sample merger and acquisition (M&A) data of China's A-share listed companies from 2007 to 2022, this study adopts the multiphase difference-in-differences (DID) methodology to examine the heterogeneity of diversified M&A activities and their effects on enterprise innovation efficiency. Findings indicate that diversified M&As hinder the advancement of firms’ innovation efficiency. Diversified M&As have a heterogeneous impact on enterprise innovation. Specifically, young enterprises, enterprises with limited cash flow, and enterprises in highly competitive industries experience a greater negative impact on innovation efficiency. Furthermore, long-term diversified operations with minimal business changes and a substantial decrease in leverage ratio harm innovation efficiency. These conclusions broaden the understanding of M&A's innovative effects and provide a practical foundation for domestic enterprises’ M&A decision-making.
期刊介绍:
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