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Stock Payment, State Ownership and Innovation Performance in China's Pharmaceutical M&As.
- Source :
- Chinese Economy; Sep/Oct2022, Vol. 55 Issue 5, p380-396, 17p, 9 Charts
- Publication Year :
- 2022
-
Abstract
- The Chinese pharmaceutical industry has seen rapid development, with industrial mergers and acquisitions (M&As) increasing over the recent years. However, the studies focused on the characteristics and identified limited impacts of these M&As. This paper then intends to fill the gap by analyzing 393 completed M&As deals in China's pharmaceutical industry from 2004 to 2016 concerning 54 firms. This paper found that: (1) firms' innovation performance is higher when the industrial M&As activities are intensive. (2) M&As activity improves firms' innovation output while overly frequent M&As exert negative effects on innovation output. Stock payment is negatively associated with firms' innovation output. (3) Firms' innovation performance is statistically different between state-owned enterprises (SOEs) and non-SOEs. Firms' innovation performance does not vary whether the acquisition was conducted by SOEs or non-SOEs. Apart from providing empirical evidence, this paper, in turn, proposes policy implications for further innovation development in the Chinese pharmaceutical industry. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 10971475
- Volume :
- 55
- Issue :
- 5
- Database :
- Complementary Index
- Journal :
- Chinese Economy
- Publication Type :
- Academic Journal
- Accession number :
- 158339113
- Full Text :
- https://doi.org/10.1080/10971475.2021.1996554