Resource Allocation Strategic Deviance between the Acquirer and the Target,and TFP
Enterprises are an important part of the market.How enterprises effectively allocate their own resources and improve total factor productivity(TFP)is the key to their value and competitiveness,as well as an important factor in promoting Chinese economy.According to the resource base view,enterprises not only acquire necessary production factors from the market,but also continuously allocate,combine and utilise resources among various departments of the enterprise,and form their own unique resource allocation strategies.Enterprises can transform external resources into internal resources through mergers and acquisitions in order to achieve the optimisation of property rights structure and the improvement of resource allocation.However,corporate strategy has a certain degree of continuity and consistency.The occurrence of mergers and acquisitions will be introduced into the strategic model of anoth-er enterprise,which in turn will have a certain impact on the original corporate strategy,bringing uncertainty to the performance of the enterprise.On the one hand,the difference of resources between M&A parties is the basis of resource reallocation and develop-ment.Interaction between M&A parties with different resource allocation strategies may be beneficial for the firm to allocate inter-nalised external resources to the optimal project,to optimise resource reallocation and to improve resource utilisation efficiency.On the other hand,when the strategies of M&A parties are similar,it may be more conducive to the synergistic effect of both parties and improve the integration effect of the resources of both M&A parties.The article uses the M&A events of Chinese listed companies from 2004 to 2017 as a sample to examine the impact of strategic dif-ferences on resource allocation between the acquirer and the target on the acquirer's TFP after merger.The research results show that the strategic deviance on resource allocation between the acquirer and the target has a negative impact on TFP and this negative influence decreases around three years after merge.Furthermore,the strategic deviance changes the resource allocation tendency of the acquirer and there exists an indirect effect of strategic deviance on company financial performance in the second year after M&A through the mediator TFP in the first year after M&A.This finding suggests that the strategic deviance has a timely impact on TFP,but has a lagging effect on financial performance slowly,which also illustrates why CARs have little change after M&A and BHCARs decline significantly.Finally,the paper also discovers that,the negative impact of strategic differences is attenuated for the total factor productivity with the high degree of organizational flexibility and high organizational capital;while the negative impact of strategic differences is worse with large relative scale of M&A and different region M&A.The research contributions of this paper are:(1)Regarding the impact of strategic differences on M&A performance,most of the liter-ature focuses on the differences in the business strategies of the merging and acquiring parties;however,the core of corporate strate-gy is the allocation of resources,and the strategic measurement of the industry as a differentiation does not explore the essence of the corporate strategy in depth.At the same time,many listed companies in China are involved in multiple business areas,and comparing the main industry in which the company is located with the industry of the acquired party,it may be biased to conclude the strategic differences between the M&A parties.Therefore,this paper makes an entry from the company's internal resource allocation to ex-plore the impact of the strategic differences in resource allocation between the M&A parties on total factor productivity,which not only captures the essence of the strategic differences between the two parties,but also eliminates the bias in the measurement of the differences in the business strategies of the M&A parties and expands the perspectives of the related strategic research;(2)Previous literature has argued that the strategic differences between the M&A parties have an impact on both the synergistic effect of efficien-cy and the effect of strategic complementarities,but it is mainly analysed from a single perspective of efficiency or complementarity,and less explored the joint impact of strategic differences between the two parties on different effects.This paper investigates the effects of strategic differences in resource allocation between M&A parties on TFP and subsequent firm value,and examines wheth-er TFP serves as an intermediary mechanism affecting firm value creation,enriching related M&A research.Finally,this paper has certain practical significance:as an important part of the national economy,how enterprises can effectively utilise resources,improve the efficiency of resource allocation at the micro level,and increase the productivity level will be related to economic development.Mergers and acquisitions as a major turning point in the business activities of enterprises,explore the degree of strategic matching of resource allocation between the two sides of mergers and acquisitions can help enterprises make better merger and acquisition deci-sions,improve enterprise performance,and promote the sustainable and healthy development of enterprises.
万方数据
维普
