Can Digital Finance Accelerate the Digital Transformation of Companies? From the Perspective of M&A

Mingtao Yu and Aiguo Yan ()
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Mingtao Yu: Business School, Shandong University of Technology, Zibo 255000, China
Aiguo Yan: Business School, Shandong University of Technology, Zibo 255000, China

Sustainability, 2022, vol. 14, issue 21, 1-16

Abstract: Digital M&A, known as digital merger and acquisition, is a vital tool for companies to achieve digital transformation and play an essential role in sustainable development. Corporate digital M&A is inseparable from financial support. Therefore, based on the M&A data of Chinese A-share listed companies from 2011–2020, this paper systematically analyzes the impact effect of digital finance on corporate digital M&A in combination with the Peking University Digital Inclusive Finance Index. The results show that: (1) Digital finance development contributes to the implementation of digital M&A by enterprises, and the higher the level of development, the more likely enterprises are to engage in digital M&A. (2) Financing constraints and the innovation capacity play a partially intermediary role between digital finance and digital M&A. (3) Executive age and internal control negatively moderate the relationship between digital finance and digital M&A, and bank competition positively moderates the relationship. These research findings provide useful lessons for promoting digital M&A and accelerating digital transformation in enterprises.

Keywords: digital finance; digital M&A; financing constraints; innovation capacity; Chinese companies (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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