Asia-Pacific Journal of Business (아태비즈니스연구)

KNU The Institute of Management & Economy Research (강원대학교 경영경제연구소)
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Digital Transformation, Manipulation of Asset Evaluation and M&A Performance: Discussion on the Intermediary Effect of Internal Control

  • Chen Chen (College of Accounting, Shandong Technology and Business University) ;
  • Hee-Jung Lee (The Dept of Business Administration, Incheon National University) ;
  • Nan Hui (College of Accounting, Shandong Technology and Business University) ;
  • Xue-Hua Qian (College of Accounting, Shandong Technology and Business University)
  • Received : 2023.02.28
  • Accepted : 2023.03.25
  • Published : 2023.03.31
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Abstract

Purpose - The purpose of this study was to examine the internal relevance between digital transformation, manipulation of asset evaluation and corporate M&A performance and further explores the impact path of manipulation of asset valuation on corporate M&A performance. Design/methodology/approach - This study based on the financial data of A-share listed companies in Shanghai and Shenzhen Stock Exchanges from 2013 to 2021. Findings - First, manipulation of asset evaluation is negatively correlated with M&A performance. Second, Digital transformation significantly weakens the negative correlation between manipulation of asset evaluation and corporate M&A performance. Third, The effectiveness of internal control plays a partially intermediary role in the process of manipulation of asset evaluation affecting M&A performance. Research implications or Originality - Enriching the existing literature on the subject, the study can also provide useful reference for improving the performance of corporate mergers and acquisitions, regulating asset valuation, promoting the digital transformation of enterprises and improving internal control mechanisms, with both theoretical and practical implications.

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