|
|
|
| Do Chinese Companies' Cross-Border Merger and Acquisitions Promote the Acquirers' R&D Internationalization |
| Zhang Yu1,Wu Xianming2,Zhou Wei2 |
| (1.Business School, Hebei University of Economics and Business, Shijiazhuang 050061, China;2.Economics and Management School, Wuhan University, Wuhan 430072, China) |
|
|
|
|
Abstract Over the past 40 years, China's economy has experienced constant and rapid growth. A growing number of researchers show great interest in China's high economic growth. It can be seen that the objective of cross-border M&As of Chinese companies involve multiple countries (regions), including both developed markets and emerging markets. As emerging economies rise, researchers are increasingly focusing on the relationship between cross-border M&As and the acquirer’s R&D in emerging markets. Some researchers think that cross-border M&As can provide the buyer with access to the foreign market, and provide both acquirers and target companies with opportunities for complementary resources on a larger scale. Some other scholars emphasize that cross-border M&As are a viable technology acquisition strategy, offering domestic firms the opportunity to circumvent the technological blockade of multinationals. In addition some papers argue that the buyer of cross-border investments will face the problem of double cultural adaptation and will have to assume more responsibility for the new entrants.#br#By analyzing the earlier literature, it is found that research findings on the relationship between cross-border M&As and enterprises’ R&D are not strong. Furthermore, there are two shortcomings in the existing paper. One is the lack of empirical research that reveals the internal mechanism of cross-border M&As and corporates’ R&D, and so it cannot open the black box of the relationship between them. Moreover the previous literature pays too much attention on the influence of the host country (region) institutional context, and the discussion of the home country (region) system is rare.#br#Based on the 2007—2020 data on the cross-border M&As of listed companies of Chinese industrial enterprises, this paper empirically demonstrates the relationship between the cross-border M&As and the acquirer's R&D internationalization. It is concluded at first, the scale and equity of cross-border merger and acquisitions have a significant positive impact on the acquirer’s R&D internationalization. The impact of cross-border M&As’ integration on the acquirer’s R&D internationalization is not stable. Second, a grouping test based on the heterogeneity of property rights shows that, the influence of the scale of the state-owned enterprises’ cross-border M&As on the acquirer’s R&D internationalization is stronger than that of private ones. Third, a grouping test based on the heterogeneity of the host country (region) shows that when the host country (region) is a developed country (region), the scale and equity of cross-border M&As have a significant positive impact on the acquirer's R&D internationalization; when the host country (region) is a developing country (region), the cross-border M&As does not have a significant impact on the acquirer’s R&D internationalization.#br#The contribution of this paper is as follows.First of all, the existing literature on the relationship between cross-border M&As and corporate’s R&D have not reached a logically consistent conclusion. Taking the listed companies of Chinese industrial enterprises as the sample, this paper analyzes the impact of cross-border M&As on the acquirer's R&D internationalization. Not only does it enrich the existing literature, it also brings new evidence in this area. Secondly, the previous literature, mainly focusing on the influence of the host country (region) institution, did not address the context of the country of origin (region) system. As opposed to cross-border M&As in developed markets, overseas M&As of Chinese industrial firms are special activities. For Chinese industrial enterprises which carry out cross-border M&As activities, they are not only affected by the host country (region) institution, but also by the home country (region) system. Therefore, this study integrates the heterogeneity of corporate property rights in the context of the home country (region) institution and the heterogeneity of the host country (region) in the host country (region) system, and analyzes its impact on the relationship between cross-border M&As and the enterprise’s R&D internationalization. It is a useful supplement to the existing paper. Finally, a combination of random effects models and 2SLS regressionare employed to control the endogenous problems, verifying the relationship between cross-border M&As and the acquirer’s R&D internationalization in multiple scenarios, and making the conclusion more reliable. The conclusions enrich the existing theoretical results, and provide reference for the practice of Chinese industrial enterprises' cross-border M&As.#br#
|
|
Received: 12 April 2021
|
|
|
|
|
|
| [1] KAMIEN M I,ZANG I.The limits of monopolization through acquisition[J].The Quarterly Journal of Economics,1990,105(2):465-499.[2] 任曙明,许梦洁,王倩,等.并购与企业研发:对中国制造业上市公司的研究[J].中国工业经济,2017，34(7):137-155.[3] SHLEIFER A,VISHNY R W.Value maximization and the acquisition process[J].Journal of Economic Perspectives,1988,2(1):7-20.[4] COLOMBO G,CONCA V,BUONGIORNO M,et al.Integrating cross-border acquisitions:a process-oriented approach[J].Long Range Planning,2007,40(2):202-222.[5] CAPRON L.The long-term performance of horizontal acquisitions[J].Strategic Management Journal,1999,20(11):987-1018.[6] BERTRAND O,ZUNIGA P.R&D and M&A:are cross-border M&A different? an investigation on OECD countries[J].International Journal of Industrial Organization,2006,24(2):401-423.[7] SCHULZ J,WATKINS M.The development of the leisure meanings inventory[J].Journal of Leisure Research,2007,39(3):477-497.[8] DESYLLAS P,HUGHES A.Do high technology acquirers become more innovative[J].Research Policy,2010,39(8):1105-1121.[9] GUADALUPE M,KUZMINA O,THOMAS C.Innovation and foreign ownership[J].American Economic Review,2012,102(7):3594-3627.[10] 吴先明,苏志文.将跨国并购作为技术追赶的杠杆:动态能力视角[J].管理世界,2014，31(4):146-164.[11] 陈爱贞,刘志彪.以并购促进创新:基于全球价值链的中国产业困境突破[J].学术月刊,2016,48(12):63-74.[12] 张学勇,柳依依,罗丹,等.创新能力对上市公司并购业绩的影响[J].金融研究,2017，38(3):159-175.[13] 冼国明,明秀南.海外并购与企业创新[J].金融研究,2018,39(8):155-171.[14] ZAHEER S.Circadian rhythms:the effects of global market integration in the currency trading industry[J].Journal of International Business Studies,1995,26(4):699-728.[15] BARKEMA H G,BELL J H J,PENNINGS J M.Foreign entry,cultural barriers,and learning[J].Strategic Management Journal,1996,17(2):151-166.[16] CHILD J,RODRIGUES S B.The internationalization of Chinese firms:a case for theoretical extension[J].Management and Organization Review,2005,1(3):381-410.[17] REDDY P.New trends in globalization of corporate R&D and implications for innovation capability in host countries:a survey from India[J].World Development,1997,25(11):1821-1837.[18] PENG M W,WANG D Y L,JIANG Y.An institution-based view of international business strategy:a focus on emerging economies[J].Journal of International Business Studies,2008,39(5):920-936.[19] LEE S H,PENG M W,BARNEY J B.Bankruptcy law and entrepreneurship development:a real options perspective[J].Academy of Management Review,2007,32(1):257-272.[20] BRAGUINSKY S,MITYAKOV S.Foreign corporations and the culture of transparency:evidence from Russian administrative data[J].Journal of Financial Economics,2015,117(1):139-164.[21] FILATOTCHEV I,PIESSE J.R&D,internationalization and growth of newly listed firms:European evidence[J].Journal of International Business Studies,2009,40(8):1260-1276.[22] PURANAM P,SINGH H,ZOLLO M.Organizing for innovation:managing the coordination-autonomy dilemma in technology acquisitions[J].Academy of Management Journal,2006,49(2):263-280.[23] PURANAM P,SRIKANTH K.What they know vs.what they do:how acquirers leverage technology acquisitions[J].Strategic Management Journal,2007,28(8):805-825.[24] KAPOOR R,LIM K.The impact of acquisitions on the productivity of inventors at semiconductor firms:a synthesis of knowledge-based and incentive-based perspectives[J].Academy of Management Journal,2007,50(5):1133-1155.[25] BOND,HARHOFF,REENEN V.Investment,R&D and financial constraints in Britain and Germany[J].Annales d'Economie et de Statistique, 2005: 433-460.[26] LI P Y,MEYER K E.Contextualizing experience effects in international business:a study of ownership strategies[J].Journal of World Business,2009,44(4):370-382.[27] CHETTY S,ERIKSSON K,LINDBERGH J.The effect of specificity of experience on a firm's perceived importance of institutional knowledge in an ongoing business[J].Journal of International Business Studies,2006,37(5):699-712.[28] KOGUT B,SINGH H.The effect of national culture on the choice of entry mode[J].Journal of International Business Studies,1988,19(3):411-432.[29] LUO Y D,TUNG R L.International expansion of emerging market enterprises:a springboard perspective[J].Journal of International Business Studies,2007,38(4):481-498.[30] 钟宁桦,温日光,刘学悦.“五年规划”与中国企业跨境并购[J].经济研究,2019,54(4):149-164.[31] HYMER S.The efficiency (contradictions) of multinational corporations[J].American Economic Review, 1970,60(2):441-448.[32] BUCKLEY P J,CASSON M.Alternative theories of the multinational enterprise[M]//The future of the multinational enterprise. Palgrave Macmillan, London, 1976: 66-84.[33] DUNNING J H.The eclectic paradigm of international production:a restatement and some possible extensions[J].Journal of International Business Studies,1988,19(1):1-31.[34] DENG P.Outward investment by Chinese MNCs:motivations and implications[J].Business Horizons,2004,47(3):8-16.[35] ENTEZARKHEIR M,MOSHIRI S.Is innovation a factor in merger decisions? evidence from a panel of US firms[J].Empirical Economics,2019,57(5):1783-1809.[36] SERU A.Firm boundaries matter:evidence from conglomerates and R&D activity[J].Journal of Financial Economics,2014,111(2):381-405.[37] BENA J,LI K.Corporate innovations and mergers and acquisitions[J].The Journal of Finance,2014,69(5):1923-1960.[38] STIEBALE J.The impact of cross-border mergers and acquisitions on the acquirers' R&D—firm-level evidence[J].International Journal of Industrial Organization,2013,31(4):307-321.[39] LOUIS H,SUN A X,URCAN O.Value of cash holdings and accounting conservatism[J].Contemporary Accounting Research,2012,29(4):1249-1271. |
|
|
|
