This study is an effort to reveal the effect of mergers and acquisitions (M&A) size on the post-acquisition innovation performance in the emerging Chinese market. Using the mergers and acquisitions data set of 277 high-tech firms over the period 2008-2015,we show that the M&A size have an inverted U-shaped effect on post-acquisition innovation performance of the acquirer. Further research indicated that the absorptive capacity significantly positively moderate the inverted U-shaped relationship between M&A size and post-acquisition innovation performance.
Keywords: Mergers and acquisitions (M&A) size; post-acquisition innovation performance; absorptive capacity
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