RESEARCH ON THE EMPOWERMENT PATH OF DIGITAL FINANCE ECOSYSTEM EVOLUTION IN RESHAPING CORPORATE M&A STRATEGY AND ACHIEVING SYNERGISTIC EFFECTS

Abstract

This study investigates how digital finance reshapes corporate mergers in China. Using a triadic model and panel data from 2012-2024, it finds that digital finance significantly increases merger likelihood, especially for SMEs and non-state-owned firms. The mechanism operates by alleviating financing constraints and reducing information asymmetry. This fosters larger, cross-industry acquisitions and improves post-merger performance by enhancing target selection and lowering agency costs, ultimately boosting returns. The effect is most pronounced in environments with high uncertainty and weak institutional frameworks, where digital finance acts as a substitute for formal financial intermediaries.