| In recent years,acquisitions have been used frequently in the capital market as an important way of resource integration and optimization of industrial structure.Along with the upsurge of acquisitions,the performance compensation commitment(PCC)agreement emerges.The agreement has played a great role in improving the efficiency of mergers and acquisitions and enhancing the synergy effect of mergers.But in order to achieve performance commitments,management may reduce the risk of long-term investment in research and development,which may affect the overall level of research and development innovation.This paper takes the reorganization events from 2007 to 2016 as sample,combining the data of the content of PCC by collecting the announcement documents of each merger in SSE and SZSE.This paper intends to study the effect of signing PCC on enterprise innovation and company performance in reorganization.Based on the sample data,a multivariate regression model was established to test the parameter and nonparametric parameters.In the further analysis,a Propensity Score Matching(PSM)and difference-in-differences(DID)is be used.The results show that in the major reorganization events,the performance compensation agreement has a negative correlation with the investment level of enterprise innovation after the merger;compared with the non-innovative enterprises,the negative effect of the PCC on innovation enterprises is stronger;the agreement is positively correlated with the short-term after the merger,negative correlation with long-term performance but not significant.In the further analysis,we also study the effect of the compensation method of performance compensation agreement and the completion rate of performance commitment on innovation.The conclusion of this paper will help to improve the design of the specific terms of the PCC agreement,and provide reference for the application of PCC agreement,which is of great significance to achieve the mutual benefit. |
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