Impact of Enterprise Innovation Capability on Mergers and Acquisitions Performance

Abstract

Corporate mergers and acquisitions are beneficial for enhancing competitiveness, promoting industrial upgrading, and expanding market share. Since the 18th National Congress of the Communist Party of China, the country has attached great importance to innovation and focused on promoting innovation, placing it at the core of strategic deployment. It can be seen that enhancing innovation capability is particularly important for enterprises. Based on this background, analyzing the relationship between corporate innovation capability and merger and acquisition performance has important academic research significance. This article selects the corporate mergers and acquisitions events of listed companies from 2015 to 2019 as the research object, and empirically tests the impact of corporate innovation capability on corporate merger and acquisition performance through regression analysis. The empirical results show that: (1) the innovation capability of enterprises has a positive promoting effect on the performance of corporate mergers and acquisitions; (2) Both manufacturing and non manufacturing enterprises show a significant positive correlation between their innovation capabilities and M&A performance; (3) There is a significant positive correlation between the innovation capability of enterprises that do not involve major asset restructuring and their M&A performance; (4) Geographical regions can affect the relationship between a company's innovation capability and its merger and acquisition performance.