 Fintech mergers and acquisitionsHao Zheng and Mike Qinghao Mao Journal of International Money and Finance, 2024, vol. 143, issue C Abstract: Fintech firms have emerged as popular targets for mergers and acquisitions (M&A) in response to the remarkable growth of the fintech industry. However, different acquirers assess the benefits of these deals differently, and the actual benefits realized may diverge from the expected synergies. This study scrutinizes the value of fintech M&As for three types of acquirers: U.S. public banks, nonbank financial institutions, and tech companies. The short-term market reaction to fintech M&As is negative for acquiring banks and insignificant for nonbank financial institutions and tech companies, which is not explained by deal-level or acquirer-level characteristics. Moreover, using a matched sample, we find limited evidence suggesting that fintech M&As contribute to improvements in acquirers’ subsequent operating performance, innovation, or business diversification strategy. Overall, the evidence suggests that fintech acquirers, particularly acquiring banks, may potentially overestimate the benefits of such deals. Our study calls for improved guidelines to ensure more informed decision-making in fintech M&As. Keywords: Fintech; Mergers and Acquisitions; Bank (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:jimfin:v:143:y:2024:i:c:s0261560624000639 DOI: 10.1016/j.jimonfin.2024.103076 Access Statistics for this article Journal of International Money and Finance is currently edited by J. R. Lothian More articles in Journal of International Money and Finance from Elsevier |
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