The Impact of Acquisitions on Chinese Acquirers’ Innovation Performance: An Empirical Investigation of 1,545 Chinese Acquisitions

18 Pages Posted: 31 Mar 2017

See all articles by Christian Fisch

Christian Fisch

University of Trier - Faculty of Management; Erasmus University Rotterdam (EUR) - Department of Applied Economics; Erasmus Research Institute of Management (ERIM)

Jorn H. Block

University of Trier - Faculty of Management; Erasmus University Rotterdam (EUR) - Institute of Management (ERIM)

Philipp G. Sandner

Frankfurt School of Finance & Management

Date Written: March 18, 2017

Abstract

Acquisitions by Chinese firms have increased markedly in recent years. So far, we know little about the effects of these acquisitions on the acquirer’s innovation performance. In this regard, we study two related research questions. First, to what extent can Chinese firms increase their patent output following an acquisition? Second, which factors influence the post-acquisition patent output? Using a comprehensive data set of Chinese manufacturing firms, we find no significant overall effect of acquisitions on patent output. However, we find that several acquisition-specific factors have a positive effect on post-acquisition patent output (e.g., characteristics of the acquired knowledge base, cross-border acquisitions), while other factors (e.g., state-ownership) have a negative effect. Our study extends prior research on post-acquisition innovation performance to the context of China.

Keywords: Acquisitions, China, patents, innovation, absorptive capacity, state-owned enterprises, catch-up

JEL Classification: M16, O33, O34, P30

Suggested Citation

Fisch, Christian and Block, Jorn Hendrich and Sandner, Philipp, The Impact of Acquisitions on Chinese Acquirers’ Innovation Performance: An Empirical Investigation of 1,545 Chinese Acquisitions (March 18, 2017). Available at SSRN: https://ssrn.com/abstract=2943893 or http://dx.doi.org/10.2139/ssrn.2943893

Christian Fisch (Contact Author)

University of Trier - Faculty of Management ( email )

Universitätring 15
Trier, 54296
Germany
0049 651 2013033 (Phone)

HOME PAGE: http://www.unternehmensfuehrung.uni-trier.de

Erasmus University Rotterdam (EUR) - Department of Applied Economics ( email )

Netherlands

Erasmus Research Institute of Management (ERIM) ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Jorn Hendrich Block

University of Trier - Faculty of Management ( email )

D-54296
Germany

Erasmus University Rotterdam (EUR) - Institute of Management (ERIM) ( email )

Burgemeester Oudlaan 50
3000 DR Rotterdam, Zuid-Holland 3062PA
Netherlands

Philipp Sandner

Frankfurt School of Finance & Management ( email )

Adickesallee 32-34
Frankfurt am Main, 60322
Germany

HOME PAGE: http://www.philipp-sandner.de

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