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Effect of State-owned Equity on Innovation in Cross-Border Acquisitions: Evidence from Chinese Manufacturing Firms

Author(s)

Yingshan Zhong1, Qi Yue1, Xing Hua2,*

Affiliation(s)

1School of Economics and Management, South China Normal University, Guangzhou, Guangdong, China 2School of Financing and Economics, Guangdong Vocational Institute of Public Administration, Guangzhou, Guangdong, China *Corresponding Author.

Abstract

State-owned equity is a crucial factor affecting the innovation performance of cross-border acquisitions. We construct a three-dimensional "country-region-industry" model to explore the relationship between state-owned equity and cross-border acquisition innovation, and investigate the moderating effects of local regional marketization and we also investigate the moderating effects of local regional marketization and industry-related factors on the relationship between the two. Based on the cross-border acquisition cases of Chinese multinational enterprises, we use empirical research analysis to investigate the combined effects of state-owned equity, local regional marketization, and industry relevance on the innovative performance of cross-border acquisition. We find an inverted U-shaped relationship between state-owned equity and cross-border acquisition innovation performance. We also find that local regional marketization and industry relevance have moderating effects on the relationship between state-owned equity and cross-border acquisition innovation performance. This study provides a new perspective on the study of cross-border acquisition performance in emerging markets. Our findings provide some compelling conclusions, which contribute to an in-depth understanding of the relationship between SOEs and innovation performance in cross-border acquisitions and provide empirical evidence for firms' innovation decisions and practices.

Keywords

Cross-Border Acquisitions; Innovation Performance; State-Owned Equity; Regional Marketization; Industry Relevance

References

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