Impact of Mergers and Acquisitions on Enterprise Innovation Efficiency: The Mediating Role of Factor Endowment

Based on data of listed companies in China from 2015 to 2022, this paper examines the direct impact of mergers and acquisitions (M&As) on the innovation efficiency of enterprises, considering the mediating role of factor endowment. Results revealed that M&A events significantly contribute to the innovation efficiency of the subject companies; they also indirectly enhance the innovation efficiency through the optimization of the firms' factor endowment. Moreover, non-state-owned enterprises significantly improve their innovation efficiency compared to state-owned enterprises after the occurrence of an M&A event.