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Too Much of a Good Thing? The Impact of Serial M&A on Innovation Performance

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  • Xiaoxu Zhang

    (School of Business Administration, University of Science and Technology Liaoning, Anshan 114051, China)

  • Yu Song

    (School of Business Administration, University of Science and Technology Liaoning, Anshan 114051, China)

  • Hongyu Liu

    (School of Business Administration, University of Science and Technology Liaoning, Anshan 114051, China)

Abstract

Based on the sample of serial M&A of Chinese listed companies from 2010–2019, this paper intends to investigate the impact of serial M&A on innovation performance and the impact of financing constraints and digital inclusive finance (DIF). The empirical results show that an inverted U-shaped relationship exists between serial M&A and innovation performance that first goes up and then goes down. The results of mechanism analysis show that financing constraints play a mediating role in the inverted U-shaped relationship between serial M&A and innovation performance, while DIF plays a moderating role in the mediating effect of serial M&A on innovation performance through the financing constraint. The heterogeneity analysis finds that the inverted U-shaped relationship between serial M&A and innovation performance is more significant in firms with non-state ownership property, a higher business environment index, and medium and large-scale firm size. The research results not only help to promote the in-depth analysis of the impact of serial M&A on innovation performance, but also help to provide targeted theoretical reference and practical guidance for corporate management decision making.

Suggested Citation

  • Xiaoxu Zhang & Yu Song & Hongyu Liu, 2023. "Too Much of a Good Thing? The Impact of Serial M&A on Innovation Performance," Sustainability, MDPI, vol. 15(12), pages 1-23, June.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:12:p:9829-:d:1175308
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