Corporate governance, international financial development, and cross-border mergers and acquisitions

This study, based on a dataset of Chinese listed companies from 2003 to 2023, explores the impact of corporate governance, international financial development, and their interactions on enterprises' cross-border mergers and acquisitions (M&A). The findings indicate that corporate governance has a significant positive effect on cross-border M&A, with higher levels of corporate governance enhancing the frequency of such transactions. International financial development facilitates cross-border M&A, particularly in regions with more developed financial markets, where enterprises have greater opportunities to obtain financing and pursue acquisitions. There is a significant interaction between corporate governance and international financial development; effective corporate governance can effectively promote cross-border M&A in environments with favorable international financial development. Heterogeneity analysis reveals that firms in technology-intensive industries can significantly improve performance under good corporate governance and financial support, whereas the impact is relatively smaller in non-technology-intensive industries.