The Technological Innovation Performance of Chinese Firms After Cross-border M&A

From Cross-Border M&A Frequency and TMT International Experiences Perspective

DOI

10.2991/aebmr.k.201128.008How to use a DOI?

Keywords

Cross-border M&A, Technological innovation performance, International work experiences, International education experiences, Chinese companies

Abstract

Cross-border mergers and acquisitions (M&A) have always been used as an important means to enter the host country market or to obtain strategic resources. In recent years, Chinese firms are increasingly introducing capital into foreign countries through cross-border M&A. This article examines the relationship between the technological innovation performance of Chinese firms after cross-border M&A and the frequency of cross-border M&A. It also discusses whether international experiences for management who are engaged in cross-border M&A have positive impacts on the technological innovation performance. 81 listed companies in the Shenzhen and Shanghai stock markets were selected as the sample. Besides, related data from 2005 to 2014 were chosen. The technological innovation performance is measured by the number of patent applicants one year after cross-border M&A. The cross-border M&As frequency is measured by accumulative cross-border M&As number. Management international experiences are measured by international work experiences percentage and international education experiences percentage in top management team (TMT). The model adopts negative binominal regression analysis and fixed effects for control variables. The research results show that cross-border M&A frequency can significantly improve Chinese firms’ technological innovation performance. Moreover, more international work experiences are beneficial to the technological innovation performance after cross-border M&A while international education experiences have negative effects on technological innovation performance after cross-border M&A. In conclusion, Chinese companies can catch up with technology through cross-border M&A. This research both contributes to the study of management communication, and guides the decision making of the management team during the cross-border process.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Zipei Sun
PY  - 2020
DA  - 2020/11/30
TI  - The Technological Innovation Performance of Chinese Firms After Cross-border M&A
BT  - Proceedings of the 2020 2nd International Conference on Economic Management and Cultural Industry (ICEMCI 2020)
PB  - Atlantis Press
SP  - 40
EP  - 45
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.201128.008
DO  - 10.2991/aebmr.k.201128.008
ID  - Sun2020
ER  -