Abstract: Based on the background of promoting market-oriented allocation of capital and advancing high-quality population development to support Chinese modernization, we investigate how the comparative advantage of regional talent dividends influences the orderly and free cross-regional capital flows from the perspective of corporate cross-regional mergers and acquisitions (M&As). The paper finds that: (1) The comparative advantage of regional talent dividends in target provinces significantly increases the frequency and scale of cross-regional M&As by local acquirers, indicating that population quality has become a new driving force for cross-regional capital flows in China; (2) This positive relationship becomes notably more pronounced when acquirers face critical demand for high-quality talents, especially in enterprises that are technology-intensive, highly digitalized, or possess significant industry potential, proving that talent acquisition becomes a new motivation for cross-regional M&As; (3) Talent acquisition-driven cross-regional M&As yield positive economic consequences, including the upgrading of the labor structure within acquiring enterprises and the creation of synergies from mergers; (4) A target province that has lower labor costs or impresses on acquirers for its trustworthiness will lead acquirers to expect lower integration costs and go in for talent-based cross-regional M&As. Our results contribute to the literature on regional comparative advantages and corporate cross-regional M&As by integrating the perspective of population quality. They also provide practical implications for improving talent introduction and education policies at all levels of government and for guiding the orderly and free cross-regional capital flows.

Key words: talent dividends, cross-regional capital flows, comparative advantage, cross-regional M&As