Journal
RESEARCH IN INTERNATIONAL BUSINESS AND FINANCE
Volume 67, Issue -, Pages -Publisher
ELSEVIER
DOI: 10.1016/j.ribaf.2023.102118
Keywords
Digitization; Cross -border M & A; Innovation capabilities; Management myopia
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This research investigates the impact of digitalization on the completion probability of cross-border M&A. By analyzing a sample of Chinese firms listed on the A-share market between 2005 and 2021, it is found that firm digitization significantly promotes the completion of cross-border M&A. This finding remains consistent after conducting a series of robustness tests. Further analysis reveals that the promotion effect is more pronounced in samples with high finance constraints, technology-based M&A transactions, and short institutional distances. Additionally, evidence is provided to support that digitalization facilitates cross-border M&A by enhancing firms' innovation capabilities and reducing management myopia, shedding new light on the behavior of publicly traded corporations in international settings.
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 crossborder 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.
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