Going out to innovate more at home: Impacts of outward direct investments on Chinese firms' domestic innovation performance
SSCI Scopus ABDC-A
This study explores the effects of cross-border mergers & acquisitions (CBMA) on domestic innovation of Chinese firms. We build a new panel dataset that matches information on CBMA and innovation activities for China＇s publicly listed firms. We rely on matching techniques combined with a difference-in-differences estimator to study the causal effects of CBMA respectively on firms＇ investments in innovation, innovation outputs, and financial performance. The main findings reveal that CBMA has both a positive impact on firms＇ R&D spending and number of patent applications, no statistically significant effect on the number of granted patents or on the quality of those patents, and a negative effect on firms＇ financial performance. These results depend, however, on the type of CBMA (horizontal or vertical), destination country (OECD or non-OECD), and the technological intensity (high-tech or not) of the acquirer and target firm. Overall, the findings bring into question whether CBMAs, and China＇s going-out strategy, will significantly boost its indigenous innovation capabilities.
2017，Industrial Management & Data Systems
2016，Emerging Markets Review
2007，Journal of Marketing
China Economic Review
ESI Discipline：ECONOMICS & BUSINESS;