Digital mergers and acquisitions and corporate technological innovation: An analysis of innovation scale, efficiency and quality

Digital mergers and acquisitions (M&A), characterized by efficiency, have become a crucial strategic approach for enterprises seeking to enhance digital competitiveness. This paper investigates the relationship between digital M&A and technological innovation among China’s A-share listed companies from 2010 to 2020. We find that, through the “talent synergy effect” and “knowledge synergy effect”, digital M&A can bolster corporate technological innovation. Further research finds that digital M&A significantly improves firms’ innovation efficiency, innovation quality, and digital technology innovation. The heterogeneity analysis reveals that the positive impact of digital M&A on technological innovation is more pronounced among firms with lower M&A premiums, traditional manufacturing firms, asset-intensive firms, non-digital firms, those with lower levels of digital investment, firms operating in highly competitive markets, and those located in eastern regions. This study enriches the literature on M&A and technological innovation, offering valuable insights for accelerating corporate digital transformation, optimizing resource allocation, and enhancing firms’ innovation capabilities.