Do FinTech acquisitions improve the operating performance or risk profiles of acquiring firms?

We examine whether firms that acquire FinTech firms experience improved post-acquisition operating performance and/or reductions in risk profile. We employ a difference-in-differences methodology to analyze changes in the acquiring firm's operating performance and risk profile before and after an acquisition. We present strong evidence that the risk profiles of acquirers significantly improve in the post-acquisition period, but our results provide no evidence that acquirers experience improved firm operating performance following a FinTech acquisition (in terms of higher CFR or ROA).