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

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

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.

Suggested Citation

  • Wang, Jiaxin & Yuan, Xue & Huang, Xiang & Liu, Chengxin & Zhang, Pengdong, 2024. "Can digitalization facilitate cross-border M&A? Evidence from Chinese A-share listed companies," Research in International Business and Finance, Elsevier, vol. 67(PA).
    • Handle: RePEc:eee:riibaf:v:67:y:2024:i:pa:s0275531923002441
    DOI: 10.1016/j.ribaf.2023.102118
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