Research On The Relationship Among Mergers And Acquisitions Of Listed Companies,Market Competition And Enterprise Innovation

Since the reform and opening up,China has procured compelling achievements in the world.The Chinese economy has developed by leap and its overall national strength has been significantly improved.After a steady growth of 40 years,it is now the second-largest economy in the world with science,education,culture and health growing vigorously.However,technological innovation in core domains is insufficient and the great economic scale is not commensurate with the innovation output.Since the 18 th National Congress of the Communist Party of China,We have implemented the strategy of innovation-driven development and have given top priority to technological innovation.In the 13 th Five-Year Plan and the 19 th National Congress of the Communist Party of China,we had further clarified the need to improve the scientific and technical innovation level in the entire society.Scientific and technological innovation is a crucial support for national security.It is related to the future of the country and the nation.Focusing on the strategic goal of making China powerful through science and technology,China still needs to make breakthroughs in innovation.With the formulation and implementation of the innovation-driven development strategy,enterprises have become the important strength of promoting innovation.Enterprises must focus on innovation and continuously increase R&D investment,enhance technical barriers,boost market shares and profits in order to thrive in such an intensely competitive market.However,the technology innovation investment market is becoming fiercer and fiercer and innovation is a long-term investment with high risk.Therefore,some enterprises may not be able to obtain the good result of innovation in short term.For this reason,enterprises may choose to innovate through mergers and acquisitions.This paper studies 3000 cases of mergers and acquisitions of Chinese listed companies in 2010-2016.On the basis of analyzing the motivation theory of related M&A,this paper examines the impact of listed companies’ M&A on corporate innovation.After empirical research,it is found that: First,the M&A of listed companies have promoted entrepreneurial innovation.With further research,the author found that market competition intensity will help regulate the relationship between entrepreneurial innovation and its M&A.In other words,the higher market competition intensity promotes greater innovation by M&A.Second,among the various types of M&A,horizontal M&A of enterprises can foster greater innovation while market competition still has a regulating effect.However,there is no obvious promotion in innovation in terms of vertical M&A and mixed M&A.Third,merging a company with innovative foundations is more helpful to enhance the overall innovation of listed enterprises,and marketing environment still plays a role in it.Fourth,in a fiercer market competition,M&A have a significant role in promoting innovation,while in monopoly conditions;the impact of M&A on innovation is not obvious.Finally,based on the conclusions of this article,the author combines the characteristics of China’s capital market,from the perspective of the state,enterprises and investors,in order to improve China’s legal system construction,strengthen corporate governance and avoid excessive speculation by investors,in order to guide the development of China’s M&A market,promote effective integration of resources,strive to enhance the core competitiveness of enterprises,and finally break the bottleneck of industry development,put forward practical suggestions.