Investment Banks and M&A Performance Improvement in the Digital Era

Abstract

In the context of rapid digital transformation, investment banks, as key intermediaries in corporate mergers and acquisitions (M&A), are undergoing significant changes driven by technologies such as big data, artificial intelligence, and blockchain. However, there is limited systematic research on how digital transformation specifically enhances the role of investment banks in improving M&A performance. This study aims to explore the mechanisms and pathways through which digital transformation enables investment banks to elevate corporate M&A performance, addressing both theoretical and practical gaps. Using a combination of literature review and case analysis, this research examines the impact of digital transformation on investment banks and M&A activities. The findings reveal that digital transformation enhances M&A performance through three core mechanisms: information optimization, risk control, and transaction efficiency. This study uses panel-data regression analysis to quantify the relationship between the digital transformation of investment banks and the M&A performance of enterprises and reveals the underlying mechanism. Theoretically, it expands the theories of influencing factors of M&A performance and the functions of investment banks. Practically, it provides references for investment banks to optimize their strategies, for enterprises to select partners, and for regulatory authorities to formulate policies. The study contributes to the theoretical framework of digital transformation in financial services and provides practical insights for investment banks, corporations, and policymakers.