Global Dynamics of Mergers and Acquisitions and the Role of Digital Sectors: Empirical Evidence From Software and It Consulting
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| Pages: | 18 : 31 |
| Abstract: | Mergers and acquisitions have become increasingly connected to the expansion of digital technologies and the growing strategic importance of software and IT-related activities. This paper investigates the relationship between global M&A activity and transactions in the software and IT consulting & services sectors using monthly data covering the 2018–2025 period. The empirical analysis relies on an ARDL framework combined with co-integration techniques, error correction modeling, and several diagnostic and causality tests. The findings reveal a stable long-run association between worldwide M&A activity and the digital sector analyzed, with IT consulting & services showing the strongest impact on global transaction dynamics. The inclusion of a COVID-19 dummy variable improves the model specification and confirms the disruptive effect of the pandemic on merger and acquisition activity. The study highlights the growing relevance of digital sectors in explaining changes in the global M&A environment and emphasizes the importance of technological capabilities in contemporary corporate restructuring strategies. |
| JEL classification: | G34, L86, O33, C32, F23 |
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G34, L86, O33, C32, F23
