TY - JOUR

T1 - Why do Banks acquire FinTech? The Role of Board Cultural Diversity

AU - Alessio, Reghezza

AU - Vasilakis, Chrysovalantis

PY - 2024/6/22

Y1 - 2024/6/22

N2 - This paper examines the role of cultural diversity in bank boardrooms for the acquisition of inno- vation financial technology – or “FinTech” – firms. Using a sample of 808 banks from 2008-18 in 65 countries, we find that culturally diverse boards are more likely to pursue the acquisition of FinTech firms. We also show that bank-, country- and corporate governance-specific characteristics matter for FinTech acquisition. In particular, banks with older and more gender diverse boardrooms are more likely to acquire FinTech firms. Our paper assumes particular relevance for banks seeking to invest in digital technologies and to adapt to the new digital era.

AB - This paper examines the role of cultural diversity in bank boardrooms for the acquisition of inno- vation financial technology – or “FinTech” – firms. Using a sample of 808 banks from 2008-18 in 65 countries, we find that culturally diverse boards are more likely to pursue the acquisition of FinTech firms. We also show that bank-, country- and corporate governance-specific characteristics matter for FinTech acquisition. In particular, banks with older and more gender diverse boardrooms are more likely to acquire FinTech firms. Our paper assumes particular relevance for banks seeking to invest in digital technologies and to adapt to the new digital era.

U2 - 10.1016/j.bar.2024.101424

DO - 10.1016/j.bar.2024.101424

M3 - Article

JO - British Accounting Review

JF - British Accounting Review

SN - 0890-8389

M1 - 101424

ER -