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How host country fintech levels affect cross-border M&A by Chinese companies

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Listed:
  • Dong, Fang
  • Liu, Jia
  • Feng, Baobing
  • Wang, Yiduo

Abstract

This paper uses micro level data on Chinese enterprises conducting overseas M&A from 2005 to 2022, combined with the 2023 Orbis database, to construct a comprehensive indicator of host country fintech development and examine its impact on the scale and patterns of Chinese firms’ cross border M&A. The empirical results show that: (1) higher host country fintech levels significantly increase the scale of Chinese overseas M&A, and these findings remain robust across a series of robustness checks; (2) heterogeneity analysis indicates that the positive effect of host country fintech is more pronounced in host countries with higher institutional quality, in the service sector, and for non-state-owned enterprises; (3) mechanism analysis reveals that host country fintech facilitates cross border M&A by improving digital infrastructure, enhancing the business environment, and reducing information and financing frictions. This paper enriches the theory of cross-border mergers and acquisitions in the era of digital economy and provides an important reference for Chinese enterprises to "go global".

Suggested Citation

  • Dong, Fang & Liu, Jia & Feng, Baobing & Wang, Yiduo, 2026. "How host country fintech levels affect cross-border M&A by Chinese companies," Finance Research Letters, Elsevier, vol. 93(C).
    • Handle: RePEc:eee:finlet:v:93:y:2026:i:c:s1544612326001662
    DOI: 10.1016/j.frl.2026.109635
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    References listed on IDEAS

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