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

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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)

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.

Suggested Citation

  • Mingtao Yu & Aiguo Yan, 2022. "Can Digital Finance Accelerate the Digital Transformation of Companies? From the Perspective of M&A," Sustainability, MDPI, vol. 14(21), pages 1-16, November.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:21:p:14281-:d:960288
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    2. Li, Quan & Chen, Huimin & Chen, Yang & Xiao, Tong & Wang, Li, 2023. "Digital economy, financing constraints, and corporate innovation," Pacific-Basin Finance Journal, Elsevier, vol. 80(C).
    3. Cheng, Hang & Ruan, Ping & Wang, Peng, 2024. "The impact of surging computing power on enterprise digital transformation–Based on quasi-natural experiments set up by the National Supercomputing Center," Finance Research Letters, Elsevier, vol. 65(C).
    4. Ding, Guangyuan & Li, Zhenzu & Shen, Hebin, 2024. "Digital finance and enterprise trade and investment: The moderating effect of CEO characteristics," Finance Research Letters, Elsevier, vol. 64(C).
    5. Na Qin & Yiping Liu, 2022. "Performance Compensation Commitment in Mergers and Acquisitions," Sustainability, MDPI, vol. 14(23), pages 1-14, December.

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