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Do FinTech acquisitions improve the operating performance or risk profiles of acquiring firms?

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  • Austin, Rebekah E.
  • Dunham, Lee M.

Abstract

We examine whether firms that acquire FinTech firms experience improved post-acquisition operating performance and/or reductions in risk profile. We employ a difference-in-differences methodology to analyze changes in the acquiring firm’s operating performance and risk profile before and after an acquisition. We present strong evidence that the risk profiles of acquirers significantly improve in the post-acquisition period, but our results provide no evidence that acquirers experience improved firm operating performance following a FinTech acquisition (in terms of higher CFR or ROA).

Suggested Citation

  • Austin, Rebekah E. & Dunham, Lee M., 2022. "Do FinTech acquisitions improve the operating performance or risk profiles of acquiring firms?," Journal of Economics and Business, Elsevier, vol. 121(C).
    • Handle: RePEc:eee:jebusi:v:121:y:2022:i:c:s0148619522000340
    DOI: 10.1016/j.jeconbus.2022.106078
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    More about this item

    Keywords

    FinTech; M&A; Firm performance; Firm risk;
    All these keywords.

    JEL classification:

    • G35 - Financial Economics - - Corporate Finance and Governance - - - Payout Policy

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