The impact of acquisitions on Chinese acquirers’ innovation performance: an empirical investigation of 1545 Chinese acquisitions

Fisch, Christian; Block, Joern; Sandner, Philipp

doi:10.1007/s11573-018-0905-9

Cited by 7 publications

(3 citation statements)

References 72 publications

(175 reference statements)

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“…Third, the industry composition of M&As is largely reflective of the structure of the underlying economy with the bulk of deals occurring in industrials and manufacturing. The latter may explain why the existing studies (e.g., Fisch et al, 2019) find no significant impact of corporate consolidation on the innovative activities of the combined entities or why there are no observable persistent shifts in operational performance after deal completion (Zhang et al, 2018).…”

Section: Literature Reviewmentioning

confidence: 99%

Do Corporate Consolidations Affect the Competitive Positioning of Non-Financial Firms in China?

Osiichuk,

Wnuczak

2023

Sage Open

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In a quest for economies of scale, access to technologies, and, most importantly, expansion of market share, Chinese public companies have been engaged in several consecutive waves of mergers and acquisitions (M&As) involving mostly domestically domiciled non-listed targets from the same or adjacent industries. Relying on a comprehensive panel dataset of 7,998 transactions completed between 1993 and 2020 by 2,842 publicly listed acquirers domiciled in China, the paper attempts to establish whether M&A deals allow acquirers to improve their market share and, consequently, their relative market position. We use dynamic panel regression and ordered logit models to establish and quantify the link between deal characteristics and the post-deal market share of the combined entities. Our empirical findings demonstrate that corporate consolidations exercise no significant impact on the relative competitive positioning of firms. Only acquisitions by industry leaders produce a sizeable increase in the latter’s market share and lead to higher industry concentration. Most consolidations occur among outsiders exhibiting a high degree of similarity, relatively lower profitability, and stagnant market shares within the more competitive industries with higher rates of firm creation. These consolidations, often in the form of mergers, are not effective in advancing the combined entities’ competitive positioning. Despite the fact that the bulk of corporate consolidations appears unlikely to constitute a threat to competition in the medium term, careful regulatory oversight may be warranted within the currently fragmented and highly commoditized industries, which appear likely to consolidate at the fastest pace. JEL Classification: G30, G32.

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Section: Literature Reviewmentioning

confidence: 99%

Do Corporate Consolidations Affect the Competitive Positioning of Non-Financial Firms in China?

Osiichuk,

Wnuczak

2023

Sage Open

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“…Second, if the relative technological scale of two parties are large, the acquirer will devote most of its resources to the integration of the two knowledge bases, resulting in less resources flowing into innovation activities and causing a crowding-out effect of innovation resources (Ahuja and Katila, 2001;Cloodt et al, 2006). Third, the relatively large amount of new information and practices faced by the acquirer may disrupt existing innovation procedures and cause disruptions to existing innovation processes and activities (Cloodt et al, 2006;Fisch et al, 2018). Echoing the contradictory view, the empirical findings also show two sides.…”

Section: Relative Technological Scalementioning

confidence: 99%

What Factors Affect the Innovation Performance of Cross-border Technology M&A Enterprises?

Li¹

2023

JID

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Cross-border technology M&A is recognized as an important strategic decision for enterprises to acquire advanced technologies and establish international competitive advantages. However, existing research does not explain how cross-border technology M&A enterprises can obtain high innovation performance under the influence of different factors. This study uses the fuzzy set qualitative comparative analysis (fsQCA) method to construct an antecedent conditional configuration model of innovation performance after cross-border technology M&A. The configurations consist of five influencing factors, three at enterprise level (knowledge base, R&D investment, relative technology scale) two at institutional level (host country institutional quality, diplomatic relations), and this study analyses how they combine to influence innovation performance after cross-border technology M&A.

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“…As reported by the Ministry of Commerce, the total amount of cross-border M&As in Chinese firms has increased sixteen fold from 2006 ($8.25 billion) to 2016 ($135.33 billion), and the average growth rate is more than 150% per year. With cross-border M&As, enterprises can not only acquire advanced technology and managerial experience [1,2], but also expand their business and brand into global markets. For example, the giant company Alibaba has undertaken several cross-border M&A activities recently, and has now become a activities recently, and has now become a famous multinational corporation with an e-commerce business covering more than 200 countries and regions in the world.…”

Section: Introductionmentioning

confidence: 99%

Improving Enterprises’ Cross-Border M&A Sustainability in the Globalization Age—Research on Acquisition and Application of the Foreign Experience

Xie

Lin

et al. 2019

Sustainability

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The advancement of globalization has encouraged an increasing number of enterprises to go abroad and take cross-border mergers and acquisitions (M&A) to expand their overseas market and improve core competitiveness, although many acquirers fail to gain value from post-acquisition integration. On the basis of organizational learning theory, this paper explores the effect of executives’ foreign experience on cross-border M&A sustainability, and examines how the externally acquired knowledge can be effectively applied to cross-border M&A practice. Taking a sample of Chinese listed companies that have completed cross-border M&As during 2008–2016, our research proposes an integrated framework of foreign experiential knowledge, and discusses the process of acquisition and application of this experiential knowledge into cross-border M&As. Empirical research findings show that, compared with the general foreign experience, the specific foreign experience based on target country significantly improves cross-border M&A sustainability, and executives with host-specific work experience plays a more important role than that of education experience. Further research found that long-tenured executives positively moderate the effect of foreign experiential knowledge on cross-border M&A sustainability, while the pay gap for executives, which hampers internal coherence, plays a negative moderating role. This research provides a new insight into the promotion of the sustainable development of enterprise cross-border M&A in the globalization age.

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The impact of acquisitions on Chinese acquirers’ innovation performance: an empirical investigation of 1545 Chinese acquisitions

Cited by 7 publications

References 72 publications

Do Corporate Consolidations Affect the Competitive Positioning of Non-Financial Firms in China?

Do Corporate Consolidations Affect the Competitive Positioning of Non-Financial Firms in China?

What Factors Affect the Innovation Performance of Cross-border Technology M&A Enterprises?

Improving Enterprises’ Cross-Border M&A Sustainability in the Globalization Age—Research on Acquisition and Application of the Foreign Experience

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