The effect of fintech M&As on short-term stock return in the context of macroeconomic environment
Abstract Mergers and acquisitions (M&A) with financial technology (fintech) companies can be an effective way for firms to obtain new technologies and capabilities. However, the market reaction to fintech M&A announcements has received limited attention in the empirical academic literature....
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| Format: | Article |
| Language: | English |
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SpringerOpen
2025-01-01
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| Series: | Financial Innovation |
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| Online Access: | https://doi.org/10.1186/s40854-024-00673-9 |
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| author | Elena Ochirova Mikhail Miriakov |
| author_facet | Elena Ochirova Mikhail Miriakov |
| author_sort | Elena Ochirova |
| collection | DOAJ |
| description | Abstract Mergers and acquisitions (M&A) with financial technology (fintech) companies can be an effective way for firms to obtain new technologies and capabilities. However, the market reaction to fintech M&A announcements has received limited attention in the empirical academic literature. This study assesses the impact of fintech M&As on stock returns and examines whether macroeconomic variables influence the abnormal return of fintech M&As. Using event study analysis, we found that fintech M&A announcements generate a significant positive short-term abnormal return. Furthermore, we demonstrated that macroeconomic parameters, including Gross domestic product (GDP) growth, inflation rate, the share of services in GDP, and aggregate export growth, positively affect abnormal returns. In contrast, private investment, consumer spending, and an economy’s size negatively influence fintech M&As’ abnormal returns. |
| format | Article |
| id | doaj-art-9b701ba33d404b6594f2e4016c3a8f35 |
| institution | Kabale University |
| issn | 2199-4730 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | SpringerOpen |
| record_format | Article |
| series | Financial Innovation |
| spelling | doaj-art-9b701ba33d404b6594f2e4016c3a8f352025-01-05T12:43:37ZengSpringerOpenFinancial Innovation2199-47302025-01-0111111810.1186/s40854-024-00673-9The effect of fintech M&As on short-term stock return in the context of macroeconomic environmentElena Ochirova0Mikhail Miriakov1Institute for Statistical Studies and Economics of Knowledge, HSE UniversityFaculty of Economic Sciences, HSE UniversityAbstract Mergers and acquisitions (M&A) with financial technology (fintech) companies can be an effective way for firms to obtain new technologies and capabilities. However, the market reaction to fintech M&A announcements has received limited attention in the empirical academic literature. This study assesses the impact of fintech M&As on stock returns and examines whether macroeconomic variables influence the abnormal return of fintech M&As. Using event study analysis, we found that fintech M&A announcements generate a significant positive short-term abnormal return. Furthermore, we demonstrated that macroeconomic parameters, including Gross domestic product (GDP) growth, inflation rate, the share of services in GDP, and aggregate export growth, positively affect abnormal returns. In contrast, private investment, consumer spending, and an economy’s size negatively influence fintech M&As’ abnormal returns.https://doi.org/10.1186/s40854-024-00673-9FintechFinancial innovationsEvent studyMergers and acquisitions |
| spellingShingle | Elena Ochirova Mikhail Miriakov The effect of fintech M&As on short-term stock return in the context of macroeconomic environment Financial Innovation Fintech Financial innovations Event study Mergers and acquisitions |
| title | The effect of fintech M&As on short-term stock return in the context of macroeconomic environment |
| title_full | The effect of fintech M&As on short-term stock return in the context of macroeconomic environment |
| title_fullStr | The effect of fintech M&As on short-term stock return in the context of macroeconomic environment |
| title_full_unstemmed | The effect of fintech M&As on short-term stock return in the context of macroeconomic environment |
| title_short | The effect of fintech M&As on short-term stock return in the context of macroeconomic environment |
| title_sort | effect of fintech m as on short term stock return in the context of macroeconomic environment |
| topic | Fintech Financial innovations Event study Mergers and acquisitions |
| url | https://doi.org/10.1186/s40854-024-00673-9 |
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