 Does broadband infrastructure affect corporate mergers and acquisitions? Quasi-natural experimental evidence from ChinaNan Sun, Dongmin Kong and Yunqing Tao International Review of Financial Analysis, 2023, vol. 85, issue C Abstract: This study investigates the relationship between broadband infrastructure and corporate M&A. Using the shock of “Broadband China” policy, we conduct difference-in-differences estimations and find that broadband infrastructure significantly increases corporate M&A, which remains robust after a series of robustness checks. Further analysis shows that the underlying mechanism is alleviating information asymmetry and increasing market competition. Finally, the heterogeneity analysis shows that our results are significant mainly in the group with high regional market segmentation, manufacturing industries, and non-state enterprises. Overall, this study enriches the research on the driving factors of M&A at the firm level and provides a micro-level evaluation of economic consequences of broadband infrastructure. Keywords: Broadband infrastructure; Merger and acquisition; Information asymmetry (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:85:y:2023:i:c:s1057521922004112 DOI: 10.1016/j.irfa.2022.102461 Access Statistics for this article International Review of Financial Analysis is currently edited by B.M. Lucey More articles in International Review of Financial Analysis from Elsevier |
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