Research On The Decision Making Of Companies' M&A Based On Technological Innovation

As an important means of rapid development of enterprises,mergers and acquisitions(M&A)have been growing rapidly in the scale and quantity of transactions in recent years.Domestic and foreign research shows that M&A behavior will have an impact on the business efficiency of enterprises,and the motivation for making M&A decisions is complex.There are many mergers and acquisitions based on improving technological innovation capability.Considering the decision-making of M&A and technological innovation,this thesis chooses the data of listed companies that made M&A decisions in China from 2012 to 2016 and never made M&A decisions.Through Probit regression model,this thesis studies the influence of technological innovation ability of M&A parties on whether they make M&A decisions or not.The empirical results show that: the investment ability and the output capacity of technological innovation has no significant influence on whether an enterprise makes M&A decisions or not;while the transformation capacity of technological innovation has a significant impact on M&A decisions;the transformation capacity of technological innovation and M&A decisions show a significant open-down parabolic relationship,i.e."inverted U" type relationship,when the transformation capacity of technological innovation is in the range of "inverted U".Within a certain range,enterprises will launch M&A more likely with the improvement of transformation ability,and when the transformation ability is too high,enterprises will restrain the tendency of M&A decision-making.Finally,based on the perspective of innovation,some feasible suggestions are provided for enterprises and government departments.