Can digitalization facilitate cross-border M&A? Evidence from Chinese A-share listed companies

Jiaxin Wang, Xue Yuan, Xiang Huang, Chengxin Liu and Pengdong Zhang

Research in International Business and Finance, 2024, vol. 67, issue PA

Abstract: This paper investigates the impact of digitalization on cross-border M&A completion probability. Using a sample of Chinese firms listed on the A-share market between 2005 and 2021, we find that firm digitization significantly promotes cross-border M&A completion. The finding still holds after a series of robustness tests. Further analysis indicates that the promotion effect is more pronounced in samples with high finance constraints, technology-based M&A transactions, and short institutional distances. Further, we provide evidence that digitalization facilitates cross-border M&A by enhancing firms' innovation capabilities and reducing management myopia. This paper provides new light on how the development of digital technologies is changing the ways publicly traded corporations behave internationally.

Keywords: Digitization; Cross-border M&A; Innovation capabilities; Management myopia (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:67:y:2024:i:pa:s0275531923002441

DOI: 10.1016/j.ribaf.2023.102118

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