Empirical Research Based on Chinese-Listed Companies Around the Performance of Corporate Mergers and Acquisitions

Abstract

This study compared the synergistic effects of technology improvements and capacity utilization on the firm performance of the acquiring companies following mergers and acquisitions (M&As) across industries, given the diverse motives for M&As. From 2012 to 2016, the sample consisted of mergers and acquisitions initiated by Chinese companies listed on the Shanghai and Shenzhen Stock Exchanges. On average, the firms performed better after the M-As. According to the data, the operational performance of enterprises in the high-tech sector, particularly those in public health, computing, telecommunications, and banking, has improved following M&As. This evidence illustrates that M&As can benefit high-tech enterprises by providing a larger talent pool and stronger financial synergy. It was discovered that good governance, as exhibited by an unbiased board, positively impacts corporate success. Since China's capital market is changing from a government-driven to a market-driven environment, the acquisition of innovation through mergers and acquisitions may be a crucial corporate growth strategy. The findings can assist business professionals and policymakers in determining which types of mergers and acquisitions are more likely to yield positive outcomes and which require additional controls and scrutiny to prevent the misallocation of resources.