A Research Of M&A Performance On The GEM Companies Based On Technological Trajectory Perspective

Growth Enterprise Market(GEM) was established on October 30, 2009 in China. The number of its companies has reach 494 on December 31, 2015. Different from main board market, the GEM companies are facing larger growing pressure:One was the capital market had high expectations on their growth, the other was regulator made the rule that they would be delisted when they got two consecutive years of losses. Which prompted the GEM companies have to use Mergers and Acquisitions(M&A) method to keep its high-growth, in order to make up the limitation of internal innovation. 336 cases of M&A events occurred in the GEM in 2014, which was up 79.68% from a year earlier. However, the development of the GEM's M&A were criticized by business and academy, such as GEM'S M&A events were driven by super raise funds, M&A activities lost the focus of main business, the M&A performance's significance cannot be verified by the statistic model. For now, there was no mature theory to explain the subject that “GEM's M&A performance in China” while business pay more and more attention to the question that “is GEM's M&A efficiency”. The paper conducted a research on the problem.Firstly, it described the GEM's M&A present situation, cleared the characteristics of the object. Most GEM companies were high-tech enterprises, which focused on high-tech industries; its development had stronger technical trajectory dependencies. GEM companies' M&A purposes were obtain new technologies, develop new products and enter new markets, which had obvious entrepreneurial orientation characteristics.Secondly, it reviewed the theories and literatures to reason out two research hypotheses. Most GEM companies had entrepreneurial orientation characteristic which could form the operating synergy better and improve their operation performance, so this thesis put forward the first hypothesis: M&A had positive influence on the GEM companies' operation performance. GEM companies under different technological trajectories had different technology innovation abilities, and they would impact the M&A performance, so this thesis put forward the second hypothesis: Under different technological trajectory, the GEM companies' M&A performance were different.Finally, it chose financial index method to analyze the data. This thesis selected the M&A data of GEM in 2010-2010 as sample, recognized each company's technological trajectory and used it to classified the data. It used SPSS22.0 to do the statistical analysis and multiple regression analysis to test the hypnoses. The empirical results showed that the M&A had significant positive influence on the GEM companies' operation performance, and under the different technological trajectory, M&A had different influence on the GEM companies' operation performance. Under "science-based" and “ information intensive” technological trajectory, M&A had significant positive influence on the GEM companies' operation performance, but under "specialized supplier", "scale intensive", and and "supplier dominated" technological trajectory, M&A had no significant influence to GEM companies' operation performance.