Impact of Fintech M&As on US and EU Acquirers’ Market Performance: Evidence from COVID-19

Impact of Fintech M&As on US and EU Acquirers’ Market Performance: Evidence from COVID-19 | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Article Impact of Fintech M&As on US and EU Acquirers’ Market Performance: Evidence from COVID-19 Talie Kassamany, Viviane Naimy, Ghiwa Dagher This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-6002332/v1 This work is licensed under a CC BY 4.0 License Status: Under Review Version 1 posted 10 You are reading this latest preprint version Abstract This study examines the impact of U.S. and EU Fintech mergers and acquisitions (M&As) on acquirers’ market performance between 2012 and 2022, with a focus on acquisition type and structure. Using event study methodology, we measure short-term cumulative abnormal returns (CARs) across six event windows, comparing performance before and during the COVID-19 pandemic. Results show that Fintech M&A announcements positively influence acquirers’ market performance, with stronger effects during the pandemic. Domestic and cash-financed deals outperform cross-border and stock-financed ones in both periods. The results offer compelling insights for investors and analysts regarding the effectiveness of Fintech M&As in enhancing the acquirers' market performance. They can prioritize firms engaged in domestic and cash-financed Fintech M&As for potential short-term gains. Additionally, the findings present signals for shareholders, aiding in more efficient capital allocation strategies in the stock market. In addition to its robust method of collecting data and selecting Fintech Acquirers, the originality of this research lies in addressing the gap regarding the recent impact of Fintech M&As on acquirers' market performance in both US and EU settings. By extending the analysis beyond 2019, this study aims to explore the impact of Fintech M&As on acquirers' stock returns (cross-border vs domestic and cash vs stock) during the COVID-19 pandemic. Business and commerce/Economics Business and commerce/Finance Fintech M&As CAR Event study Cross-border M&As domestic M&As Payment method Market Performance COVID-19 Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Under Review Version 1 posted Editorial decision: Revision requested 17 Oct, 2025 Reviews received at journal 02 Aug, 2025 Reviews received at journal 08 Jul, 2025 Reviewers agreed at journal 21 Jun, 2025 Reviewers agreed at journal 07 May, 2025 Reviews received at journal 07 May, 2025 Reviewers agreed at journal 19 Apr, 2025 Reviewers invited by journal 17 Apr, 2025 Submission checks completed at journal 17 Apr, 2025 First submitted to journal 09 Apr, 2025 You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. 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Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-6002332","acceptedTermsAndConditions":true,"allowDirectSubmit":false,"archivedVersions":[],"articleType":"Article","associatedPublications":[],"authors":[{"id":445168459,"identity":"c0151e3e-e163-4adc-ad21-57f007c49299","order_by":0,"name":"Talie Kassamany","email":"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAZAAAAAyAQMAAABI0h/eAAAABlBMVEX///8AAABVwtN+AAAACXBIWXMAAA7EAAAOxAGVKw4bAAAA6ElEQVRIiWNgGAWjYDACHjiL+QCEc4CB8TBeHQgtbAkwLQzEauExIE6LPc/hxx9/1GyTN5fI+fbgbRuDHN+NBIbDBfhs4W0zk+Y5dttw54zc7YZz2xiMJUFaZuDTws9gxszAdptxw43cbdK8bQyJG0BaePBqYf/88ce/2/YbbuQ8A2mpJ6yFt8dAgrftNtDwHDaQlgQDglrOnCmT5u27nbzhzDMzyTnnJAxnnnnYgNcv7D3pmz/++HbbdsPx5GcSb8ps5PmOJx98jC/EEEAgAURKADFjA1EaGBj4DxCpcBSMglEwCkYcAAAsYlLyGzKMYgAAAABJRU5ErkJggg==","orcid":"","institution":"Notre Dame University – Louaize","correspondingAuthor":true,"prefix":"","firstName":"Talie","middleName":"","lastName":"Kassamany","suffix":""},{"id":445168460,"identity":"62ae0d9f-cc32-4c0a-ab02-fb883cbc8fd7","order_by":1,"name":"Viviane Naimy","email":"","orcid":"","institution":"Notre Dame University – Louaize","correspondingAuthor":false,"prefix":"","firstName":"Viviane","middleName":"","lastName":"Naimy","suffix":""},{"id":445168461,"identity":"e7b78efd-9b66-4e35-a8a8-fd9e9920b3f5","order_by":2,"name":"Ghiwa Dagher","email":"","orcid":"","institution":"Notre Dame University – Louaize","correspondingAuthor":false,"prefix":"","firstName":"Ghiwa","middleName":"","lastName":"Dagher","suffix":""}],"badges":[],"createdAt":"2025-02-10 22:38:11","currentVersionCode":1,"declarations":"","doi":"10.21203/rs.3.rs-6002332/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-6002332/v1","draftVersion":[],"editorialEvents":[],"editorialNote":"","failedWorkflow":false,"files":[{"id":81016516,"identity":"8690a15f-54bb-49d0-88b8-781b71ef5b41","added_by":"auto","created_at":"2025-04-21 09:01:54","extension":"pdf","order_by":1,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":616562,"visible":true,"origin":"","legend":"","description":"","filename":"UpdatedImpactofFintechMAsonUSandEUAcquirersMarketPerformanceFinalVersion.pdf","url":"https://assets-eu.researchsquare.com/files/rs-6002332/v1_covered_bb1d7fbe-ba83-4a57-ab67-be9b9932f7d3.pdf"}],"financialInterests":"No competing interests reported.","formattedTitle":"Impact of Fintech M\u0026As on US and EU Acquirers’ Market Performance: Evidence from COVID-19","fulltext":[],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":false,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":false,"hideJournal":false,"highlight":"","institution":"","isAcceptedByJournal":false,"isAuthorSuppliedPdf":true,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":true,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"humanities-and-social-sciences-communications","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":false,"externalIdentity":"palcomms","sideBox":"Learn more about [Humanities \u0026 Social Sciences Communications](http://www.nature.com/palcomms/)","snPcode":"41599","submissionUrl":"https://submission.springernature.com/new-submission/41599/3","title":"Humanities and Social Sciences Communications","twitterHandle":"","acdcEnabled":true,"dfaEnabled":true,"editorialSystem":"stoa","reportingPortfolio":"Nature AJ","inReviewEnabled":true,"inReviewRevisionsEnabled":false},"keywords":"Fintech M\u0026As, CAR, Event study, Cross-border M\u0026As, domestic M\u0026As, Payment method, Market Performance, COVID-19","lastPublishedDoi":"10.21203/rs.3.rs-6002332/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-6002332/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eThis study examines the impact of U.S. and EU Fintech mergers and acquisitions (M\u0026amp;As) on acquirers\u0026rsquo; market performance between 2012 and 2022, with a focus on acquisition type and structure. Using event study methodology, we measure short-term cumulative abnormal returns (CARs) across six event windows, comparing performance before and during the COVID-19 pandemic. Results show that Fintech M\u0026amp;A announcements positively influence acquirers\u0026rsquo; market performance, with stronger effects during the pandemic. Domestic and cash-financed deals outperform cross-border and stock-financed ones in both periods.\u003c/p\u003e \u003cp\u003eThe results offer compelling insights for investors and analysts regarding the effectiveness of Fintech M\u0026amp;As in enhancing the acquirers' market performance. They can prioritize firms engaged in domestic and cash-financed Fintech M\u0026amp;As for potential short-term gains. Additionally, the findings present signals for shareholders, aiding in more efficient capital allocation strategies in the stock market. 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