| As a way of external technologies acquisition mode, M&A (Merger and Acquisition) have been sought-after by large numbers of enterprises. Nevertheless, domestic M&A performance is not very well, "Winner curse" always exists in it. How to mitigate "Winner curse"? Did M&A can enhance the level of enterprises technology innovation? If the answer is "Yes", what is the mechanism? To solve these problems, we divide the M&A process into three stages. In this paper, we first examine the relation between characteristics of corporate innovation activity and firm's premerger decision. We then study whether technology similarity between firms affects M&A transaction. Finally, we estimate the effect of a merger on the Acquirer's future innovation output when there is a premerger technology similarity between merging firms.In this paper, we conduct empirical test to verify the above mechanism. We make use of the M&A deals between manufacturing-listed firms from 2003 to 2012 as our research sample, and construct control samples for our research sample. Furthermore, we measure the technology similarity between firms based on firm's IPC (International Patent Classification) code. Then, we build conditional logit model and negative binomial regression model to examine our hypothesis. And our results show that:(1)Firms with higher innovation investment and slow growth in innovation output are more likely to be acquirers, while firms with large innovation output portfolios and lower innovation investment are more likely to be acquired. (2)Technology similarity between firms has a positive and significant effect on the likelihood of M&A deals. (3)The premerger technology similarity between merging firms has a positive treatment effect on post-merger innovation performance, and the innovation performance is higher when the technology similarity is in more specific areas. (4)The effect of technology similarity on post-merger innovation output is not significant in state-owned firms. |
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