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Intellectual property protection and M&A performance

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  • Li, Weibo
  • Yuan, Bingru

Abstract

This investigation delves into the connection between the safeguarding of intellectual property and the outcomes of corporate mergers and acquisitions (M&As) and the mechanisms underlying this relationship. The research uses yearly data from 2009 to 2022, encompassing A-share listed companies in Shanghai and Shenzhen, and empirically examines how intellectual property protection influences corporate M&A performance. Furthermore, it delves into the intermediary functions of accessing financial, information, and policy resources within this context. The findings reveal that bolstering intellectual property rights (IPR) protection notably enhances M&A performance. This enhancement is particularly pronounced in state-owned enterprises and those with a stronger resource foundation. Additionally, IPR protection indirectly augments M&A performance by facilitating improved access to financial, information, and policy resources for firms. These discoveries offer valuable insights for policymakers and corporate practitioners, aiding in a deeper comprehension of the pivotal role that IPR protection plays in the realm of mergers and acquisitions.

Suggested Citation

  • Li, Weibo & Yuan, Bingru, 2024. "Intellectual property protection and M&A performance," Finance Research Letters, Elsevier, vol. 64(C).
    • Handle: RePEc:eee:finlet:v:64:y:2024:i:c:s1544612324004252
    DOI: 10.1016/j.frl.2024.105395
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