The Impact Mechanism Of Cross-border M&A On Corporate Technological Innovation From The Perspective Of Technological Complementarity

In the face of the COVID-19 that started at the end of 2019,the economies of all countries have been seriously impacted.The recovery and growth of the global economy is a crucial task at present.In 2021,the world economy grew by 6.1%,global outward investment achieved a strong rebound,and Chinaese outward direct investment flow increased by 16.3% year-on-year.Foreign investment is a significant connection point of the domestic and international double cycle,and cross-border M&A,as one of the important ways of outbound investment,is of great significance in acquiring overseas technology and feeding the domestic economy.At this stage,the digital transformation of various industries is accelerating,and core technology is the top priority.Transnational M&A is an important means to seek emerging technologies and a strategic need to find ways to innovate.General Secretary Xi Jinping emphasized that "innovation is the first driving force",technological innovation is a necessary prerequisite for enhancing the country’s international status and improving the livelihood of society.China has always taken science and technology innovation as the key force to promote the healthy development of society.Previous studies have shown the complexity of the impact of cross-border M&A on firm technological innovation.Some scholars believe that cross-border M&A can have a positive impact on technological innovation output,while others argue that the impact of cross-border M&A on corporate innovation is limited.Compared with Western developed countries,China’s economic development started late,and crossborder M&A only started to appear in the 1980 s.Therefore,there is not enough research on the relationship between cross-border M&A and corporate innovation in China,and there is not enough empirical evidence on the influencing factors between the two.This paper mainly adopts OLS model and selects micro data of A-share listed companies during 2010-2021 to demonstrate the positive effect of crossborder M&A on corporate technological innovation through an empirical approach,using the logarithm of the number of invention patent applications to measure the level of corporate technological innovation.On this basis,it continues to analyze the mediating effect of overseas business and the moderating effect of technological complementarity.This paper finds that cross-border M&As of Chinese enterprises significantly improve corporate technological innovation,the promotion effect is more significant for state-owned enterprises than for non-state-owned enterprises,and the promotion effect is more significant in the central region than in other regions.Finally,based on the empirical results,this paper proposes policy recommendations.At the government level,government should clarify the strategic layout of overseas M&As,create a good external environment,and deepen multi-party cooperation.At the enterprise level,it is necessary to keep pace with the development of the times,formulate a scientific M&A plan,and improve the management level.This paper provides additional evidence for the technological innovation synergy effect of crossborder M&A of Chinese enterprises,and also provides reference for future crossborder M&A transactions in China.