The Correlation Analysis between Cross-border M & A and Corporate Technological Progress of China

In recent years, international mergers & acquisitions have become the most important way of internationalization for many Chinese firms. The impact of international mergers & acquisition is one of the important topics in academic studies. This article conducts an empirical study with total factor indicators on technological progress from the perspective of cross-border mergers and acquisitions. It takes Chinese enterprises as the object, choosing the TFP data from 1991 to 2007 statistics. The conclusions obtained through the Granger causality test are: the changes of cross-border M&A technology advances have an impact on technological progress, but the effect of this influence is not obvious. The reason was mainly due to low proportion of foreign investment in technical acquisition, over-emphasizing on the introduction of technology, ignoring the absorption and digestive process of technology and so on.