The Impact Of Target Enterprise Innovation Capability On M&A Performance

As an important means of resource allocation,M&A is an effective way for the company to gain competitive advantage in domestic and foreign markets,expand the scale of the company's business,and accelerate transformation and upgrading.According to the statistics of Guotai's M&A database,since 2010,China's M&A market has experienced an explosive growth trend,and the number of M&A transactions and the scale of M&A transactions have continued to rise.Whether these M&A transactions can create more value for mergers and acquisitions has become a hot topic in the academic world.It has been found that M&A transaction types,M&A payment methods,financial characteristics of the main parties,and corporate governance status affect the M&A performance of the main parties,and M&A activities involving the acquisition of the target's technological innovation capabilities are also increasing.The innovative ability of the target has become one of the important drivers of M&A.Does the target's ability to innovate have an impact on the M&A performance of the main party? Will the target's innovative ability promote the value added of the acquirer after the merger,thereby improving the M&A performance? Since the premise that enterprises want to convert externally acquired resources into effective resources is to have good absorptive capacity,will the absorptive capacity have an effect on the relationship between the target company's innovation ability and M&A performance? Under the background of the increasingly active M&A market,it is of great significance to explore the factors affecting M&A performance from the perspective of target companies.Through the combing of related literatures at home and abroad,this paper explores the characteristics of domestic M&A cases,and combines the market environment with Chinese characteristics to focus on whether the M&A can acquire technology and knowledge through mergers and acquisitions of innovative target to improve their innovation ability.Enhance the competitiveness of the enterprise market and play an active role in realizing the M&A value of M&A.This paper empirically analyzes the model of mergers and acquisitions acquired by the listed company in 2012-2015 as the acquirer,constructs the model of innovation ability,M&A performance and innovation ability of the target,and examines the relationship between the innovation ability of the target enterprise and the M&A performance,and discusses the enterprise.The research results show that the target enterprise's innovation ability is significantly positively correlated with the M&A performance.That is,compared to the acquisition of non-innovative targets,the acquisition of innovative target can bring better M&A performance to the acquirer.By acquiring innovative target,the company can acquire the patented technology and technology of the target.Personnel,diversify the risks brought by independent research and development,enrich their knowledge reserves,improve their own innovation ability,improve the speed and efficiency of innovation output,improve the competitiveness of enterprises,and thus improve the M&A performance of enterprises.Further absorbing the absorptive capacity into the scope of investigation,it is found that the potential absorptive capacity and the actual absorptive capacity have a positive adjustment effect on the relationship between the target's innovation ability and the M&A performance.Based on the above conclusions,this paper puts forward relevant suggestions from the two sides of the merger and the government.