The innovation effect of digital M&As: Evidence from China

Haodan Tang, Jiaxuan Liang and Senhui Fang

International Review of Financial Analysis, 2024, vol. 96, issue PA

Abstract: Digital mergers and acquisitions (M&As) have gained global momentum. However, whether digital M&As can effectively stimulate corporate innovation awaits further research. This paper evaluates the causal effect of digital M&As on corporate innovation using data from digital M&As and patents of Chinese A-share listed companies. Our findings indicate that digital M&As significantly promote the quantity and quality of acquirers' innovation, which still holds after various robustness tests and exhibits heterogeneity in different dimensions such as transactions, acquirers, and targets. Mechanism tests further reveal that knowledge synergy, financial synergy, and human capital structure upgrading are critical channels through which digital M&As promote the acquirers' innovation.

Keywords: Digital M&As; Corporate innovation; Knowledge synergy; Financial synergy; Human capital (search for similar items in EconPapers)
JEL-codes: D22 G34 O31 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:96:y:2024:i:pa:s1057521924005271

DOI: 10.1016/j.irfa.2024.103595

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