Cross-Border Mergers and Acquisitions: Financial and Institutional Forces

The Role of Political Institutions of Emerging Multinational Economies’ Cross-Border Mergers and Acquisitions in the OECD Countries

“…SDC reports that CBMAs were completed by EMNEs in the OECD countries from January 1, 2009, to December 31, 2019. The WGI (Kaufmann et al, 2012) Following studies by Coeurdacier et al (2009); Di Giovanni (2005); Hyun & Kim (2010); Kiymaz (2004); Malhotra et al (2009); Malhotra, Sivakumar, & Zhu (2011); Manchin (2004); Markides & Ittner (1994); Rossi & Volpin (2004); Uddin & Boateng (2011);and Zhang, Zhou, & Ebbers (2011), the number of completed CBMA deals by EMNEs from country i to an individual OECD country j in the year t was used as a dependent variable. SDC also reports transaction values; however, the information is incomplete for EMNEs.…”

“…The choice of control variables is based on the existing literature. The most controlled factors are economic factors (GDP per capita, inflation rate and GDP growth rate) and infrastructure factors (internet use) (Coeurdacier et al, 2009;Cuervo-Cazurra, 2006;Darby, Desbordes, & Wooton, 2010;Globerman & Shapiro, 2002a;Hur et al, 2011;Kirkpatrick et al, 2006;Mengistu & Adhikary, 2011;Singh, 2012;Wernick et al, 2009). Four more control variables were added, such as knowledge factors, administrative factors, an EU dummy variable, and regional trade agreements (RTAs).…”