Can High-Speed Railway Network Promote the Cross-City Mergers and Acquisitions? Evidence From China

Yunmin Wang, Jingjing Wang and Shuiquan Jiang

SAGE Open, 2025, vol. 15, issue 3, 21582440251366777

Abstract: China’s cross-border mergers and acquisitions (M&A) activities have shown a remarkable increase during the past few decades of rapid economic growth. This paper proposes that the development of High-Speed Railway (HSR) serves as a key factor driving the surge in cross-city M&A activities. Using the staggered differences-in-differences (DID) model, we find that HSR services significantly promote cross-region M&A activities by reducing information asymmetry. Specifically, the results show that the introduction of HSR services leads to a 43.7% increase in cross-region M&A activities in HSR cities. This study provides practical recommendations to enhance capital allocation efficiency in developing economies.

Keywords: information asymmetry; M&A; HSR (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:sae:sagope:v:15:y:2025:i:3:p:21582440251366777

DOI: 10.1177/21582440251366777

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