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The Determinants of Cross-border M&As: The Role of Institutions and Financial Development in the Gravity Model.
- Source :
- World Economy; Feb2010, Vol. 33 Issue 2, p292-310, 19p, 9 Charts, 1 Graph
- Publication Year :
- 2010
-
Abstract
- This paper examines the macroeconomic determinants of cross-border mergers and acquisitions (M&As). Using a panel dataset of bilateral M&A deal values for 101 countries for 17 years ranging from 1989 to 2005, we investigate both home and host-country factors that may play an important role in determining the size and direction of M&A flows. Overall, the empirical results suggest that legal and institutional quality and financial market development increase M&A volume across borders. The significant effect of institutions, however, may disappear for transactions between countries in similar stages of the development. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 03785920
- Volume :
- 33
- Issue :
- 2
- Database :
- Complementary Index
- Journal :
- World Economy
- Publication Type :
- Academic Journal
- Accession number :
- 47842017
- Full Text :
- https://doi.org/10.1111/j.1467-9701.2009.01224.x