Equal or Pale?Comparison of Production Efficiency between Domestic M&As and Cross-border M&As
Enhancing total factor productivity(TFP)serves as the driving force behind high-quality economic development.By construc-ting a Cournot duopoly model of two countries,this paper compares the TFP differences among companies without M&As,domestic M&As and cross-border M&As,and empirically examines the mechanism of how M&A activities influence TFP by using the data of 1,229 domestic M&As and 111 cross-border M&As involving Chinese listed companies from 2008 to 2020.This paper employs propensity score matching and time-varying difference-in-differences(DID)methods.The results show that:(1)both domestic M&As and cross-border M&As significantly enhance TFP,with cross-border M&As exerting a greater effect.This phenomenon is particularly significant for non-state-owned enterprises,high-tech companies and companies with low financing constraints.When the bilateral political relation-ship is friendly and the host country's institutional quality is high,the above phenomenon is also particularly significant;(2)further re-search shows that cross-border M&As play a stronger role in improving TFP through stronger innovation and management synergies.The distinguishing factor lies in the market monopoly effect,which negatively impacts TFP for domestic M&As but lacks significance for cross-border M&As.The combination of these three effects ultimately leads to a significantly weaker TFP improvement for domestic M&As compared to cross-border M&As.In the context of ongoing trade disputes,it is of great significance for the improvement of TFP and high-quality economic growth to encourage Chinese companies to"go out"and integrate external resources,and to actively create a market en-vironment of fair competition to facilitate the integration of internal resources.
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