Abstract: Mergers and Acquisitions(M&As) serve as a critical mechanism for optimizing resource allocation and driving high-quality economic development. In the context of the rapid growth of the digital economy, this study explores the impact of digital transformation on corporate M&As, as well as on heterogeneous M&As from the perspective of new quality productive forces using data from A-share listed companies in Shanghai and Shenzhen between 2007 and 2023. The finding indicates that digital transformation significantly stimulates corporate merger activity. The mechanism analysis shows that digital transformation drives mergers through information effect and by strengthening internal controls. Further analysis shows that digital transformation promotes intelligent, green, and high-end mergers, thereby contributing to the cultivation and development of new quality productive forces. This paper provides empirical evidence for the information effect of digital transformation in driving M&A decisions and offers a novel micro-level approach to empirically analyze the development of new quality productive forces. The findings have important implications for firms aiming to harness digital transformation to initiate M&A and accelerate the cultivation and development of new quality productive forces.

Key words: mergers and acquisitions, digital transformation, information effect, internal control mechanism, new quality productive forces