Artificial intelligence, financial investment, and corporate mergers and acquisitions

This study examines how artificial intelligence (AI) impacts corporate mergers and acquisitions (M&A) and explores the moderating role of financial investment. Using a panel of Chinese A-share listed firms from 2011 to 2024 comprising 45,139 firm-year observations, we investigate whether AI affects external expansion decisions and determine the channels through which this effect operates. Results demonstrate that AI significantly promotes corporate M&A. However, excessive financial investment weakens this positive effect, indicating that financialization constrains the strategic value of intelligent transformation. Mechanism analysis reveals that AI drives M&A by improving information transparency and enhancing resource reallocation efficiency. Heterogeneity tests show that this positive effect is more pronounced among high-tech firms, firms facing lower market competition, and firms with executives who have weaker financial backgrounds. By linking AI to boundary-expansion decisions, this study extends the literature on the economic consequences of AI and enriches research on the determinants of corporate M&A from a technology-based perspective.