Seeking new location advantages: Analysis of emerging digital cross-border M&As—Based on TIMG index

This paper examines the location change of emerging digital cross-border mergers and acquisitions (DCBMAs). Based on a country-pair-year sample in 2013–2019 and newly constructed TIMG index, we find evidence that a country’s development level of digital economy has become new location advantage to attract DCBMAs. The possibility and scale of DCBMAs will increase in countries with developed digital infrastructure, digital market, and digital technology. We extend a new distance dimension and find that digital distance may impede DCBMAs between two countries. Further evidence suggests that the relationship of digital location advantages with DCBMAs is also affected by the differences in the income level of acquiring country, the attribute of investors and the characteristics of the digital industry.