Digital Mergers and Acquisitions and Enterprise Innovation Quality: Analysis Based on Research and Development Investment and Overseas Subsidiaries

Helian Xu and Shiqi Deng ()
Additional contact information
Helian Xu: School of Economics and Trade, Hunan University, Changsha 410006, China
Shiqi Deng: School of Economics and Trade, Hunan University, Changsha 410006, China

Sustainability, 2024, vol. 16, issue 3, 1-14

Abstract: Utilizing a hand-collected dataset on digital cross-border mergers and acquisitions (M&As), we conducted an exploratory study about the effect of digital overseas M&As on the innovative quality of acquiring enterprises. Based on the digital cross-border M&A behavior of Chinese listed firms from 2010 to 2022, we offer original and robust evidence that reveals that enterprises engaging in digital cross-border M&As are more likely to produce high-quality innovations and services, and this effect may be moderated by human capital. Our explorations specifically reveal that the increase in quality of innovation from digital cross-border M&As could occur through research and development (R&D) investment and overseas subsidiaries. In addition, we found that the positive effect is especially pronounced in enterprises located in the Eastern and Western regions, and it also exists among high-tech enterprises, relatively large-scale enterprises, and digital-acquiring enterprises. We conclude by discussing how important it is for M&A enterprises to use digital technology to shape innovation quality.

Keywords: digital cross-border M&As; mergers and acquisitions; innovation quality; digital technology; patent (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2071-1050/16/3/1120/pdf (application/pdf)
https://www.mdpi.com/2071-1050/16/3/1120/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:16:y:2024:i:3:p:1120-:d:1328460

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().