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Digital merger & acquisition and corporate innovation: Evidence from China

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  • Xu, Jinhua
  • Xiong, Xinran
  • Li, Xiaoxia
  • Li, Shanmin

Abstract

Breaking through innovation bottlenecks is one of the most important issues in promoting high-quality development of the Chinese economy. Using a stacked difference-in-difference strategy, we show that digital Merger & Acquisition (M&A) has a positive effect on corporate innovation, and the effect is more salient for firms with lower levels of knowledge stock and those located in regions with lower levels of digital finance development. Further analysis shows that digital M&A promotes corporate innovation by improving human capital. Our empirical results provide policy implications for the improvement of digital capability and achievement of high-quality development.

Suggested Citation

  • Xu, Jinhua & Xiong, Xinran & Li, Xiaoxia & Li, Shanmin, 2025. "Digital merger & acquisition and corporate innovation: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 91(C).
    • Handle: RePEc:eee:pacfin:v:91:y:2025:i:c:s0927538x25000605
    DOI: 10.1016/j.pacfin.2025.102723
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