Blockchain technology, alliance networks, and corporate vertical M&A: empirical evidence from China

This paper investigates the impact of blockchain technology on firms’ vertical merger and acquisition (M&A) behaviour, and finds that the probability of firms making vertical M&A decisions increases steadily with the development of blockchain technology application. This impact is achieved by reducing transaction costs, information asymmetry and improving the integration of industrial resources. Furthermore, the establishment of alliance network relationships can provide more industrial information and other resources, complementing the advantages of blockchain technology to facilitate smooth and efficient vertical M&A activities. Specifically, although strategic alliance networks, supply chain networks, and managerial alliance networks all exert distinct effects, the establishment of supply chain networks and managerial alliance networks has a more prominent impact on the relationship between blockchain technology and firms’ vertical M&A decisions. This paper expands the research scope of blockchain applications in the field of capital market behaviour and also provides a basis and practical reference for identifying the influencing factors of firms’ vertical M&A decisions.