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Digital Mergers and Acquisitions and Enterprise Innovation Quality: Analysis Based on Research and Development Investment and Overseas Subsidiaries

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  • Helian Xu

    (School of Economics and Trade, Hunan University, Changsha 410006, China)

  • Shiqi Deng

    (School of Economics and Trade, Hunan University, Changsha 410006, China)

Abstract

Utilizing a hand-collected dataset on digital cross-border mergers and acquisitions (M&As), we conducted an exploratory study about the effect of digital overseas M&As on the innovative quality of acquiring enterprises. Based on the digital cross-border M&A behavior of Chinese listed firms from 2010 to 2022, we offer original and robust evidence that reveals that enterprises engaging in digital cross-border M&As are more likely to produce high-quality innovations and services, and this effect may be moderated by human capital. Our explorations specifically reveal that the increase in quality of innovation from digital cross-border M&As could occur through research and development (R&D) investment and overseas subsidiaries. In addition, we found that the positive effect is especially pronounced in enterprises located in the Eastern and Western regions, and it also exists among high-tech enterprises, relatively large-scale enterprises, and digital-acquiring enterprises. We conclude by discussing how important it is for M&A enterprises to use digital technology to shape innovation quality.

Suggested Citation

  • Helian Xu & Shiqi Deng, 2024. "Digital Mergers and Acquisitions and Enterprise Innovation Quality: Analysis Based on Research and Development Investment and Overseas Subsidiaries," Sustainability, MDPI, vol. 16(3), pages 1-14, January.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:3:p:1120-:d:1328460
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    References listed on IDEAS

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