Corporate M&A, Firm Performance, and Innovation-Evidence from the US Market
Year: 2024
Type: article
Abstract: The literature identifies a range of factors influencing M&A motivations, including financial and legal constraints, as well as political uncertainty. The significance of M&A in the market is substantial, as it fosters market consolidation, resource optimization, and industry innovation. This study examines the effects of corporate mergers and acquisitions (M&A) on firm performance and innovation, with a focus on relevant data and trends within the U.S. market. An analysis of over 50,000 firms in the United States reveals that since 1975, more than 75% of companies have participated in M&A activities, with this proportion rising over time. Key sectors include healthcare services and semiconductors. The research demonstrates that successful M&A not only enhances firm size and profitability but also stimulates economic growth in associated industries and regions. These findings offer valuable insights into corporate development strategies and market dynamics, providing important information for both companies and policymakers.
Author: Zitong Gan
Institution: Peking University
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4404867893