Impact of mergers and acquisitions on enterprise innovation efficiency: The mediating role of factor endowment

•M&A events have a significant positive impact on the innovation efficiency of the subject firm.•M&A activities also contribute to the enhancement of firms' factor endowments, which in turn improves innovation efficiency.•Non-state-owned firms significantly improve their innovation effi...

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Bibliographic Details
Published inFinance research letters Vol. 66; p. 105652
Main Authors Wang, Shanshan, Wang, Ying, Li, Qiuyue
Format Journal Article
LanguageEnglish
Published Elsevier Inc 01.08.2024
Subjects
Factor endowment
Innovation efficiency
Mergers and acquisitions
Factor endowment
Mergers and acquisitions
Innovation efficiency
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Summary:•M&A events have a significant positive impact on the innovation efficiency of the subject firm.•M&A activities also contribute to the enhancement of firms' factor endowments, which in turn improves innovation efficiency.•Non-state-owned firms significantly improve their innovation efficiency after the time of the occurrence of M&A. Based on data of listed companies in China from 2015 to 2022, this paper examines the direct impact of mergers and acquisitions (M&As) on the innovation efficiency of enterprises, considering the mediating role of factor endowment. Results revealed that M&A events significantly contribute to the innovation efficiency of the subject companies; they also indirectly enhance the innovation efficiency through the optimization of the firms’ factor endowment. Moreover, non-state-owned enterprises significantly improve their innovation efficiency compared to state-owned enterprises after the occurrence of an M&A event.
ISSN:1544-6123
1544-6131
DOI:10.1016/j.frl.2024.105652