The impact of firms' mergers and acquisitions on their performance in emerging economies

摘要

This paper explores the relationship between mergers and acquisitions and firm performance by running a partial least squares regression with the data of listed Chinese pharmaceutical firms from 2008 to 2016. The results show that when other conditions are unchanged, value-chain-extension mergers and acquisitions and technology-seeking mergers and acquisitions are positively related to firm performance, and that the correlation between mixed mergers and acquisitions and firm performance is not significant. In addition, this study finds that firm growth ability, firm exclusive assets, firm size, and firm age positively impact firms' performance after their mergers and acquisitions, and that corporate governance, firm property right, and firm solvency have no impact on firm performance after mergers and acquisitions. Implications of the findings are discussed.