Do state visits affect cross-border mergers and acquisitions
Journal of Corporate Finance , Volume Accepted
This paper studies the relation between state visits and cross-border merger and acquisition (M&A) activity. Based on 1161 state visits and 11,531 cross-border acquisitions, we find that corporations from visiting countries are more likely to acquire corporations in countries hosting the visit. Domestic acquisitions in the host country or M&As with non-visiting countries are not elevated. Evidence from instrumental variable analysis points towards a causal effect of state visits on M&A activity. Further analysis shows that the elevated M&A activity originating from visiting countries can be attributed to business networking and a reduction in investment uncertainty and cultural barriers.
|, , , ,|
|Journal of Corporate Finance|
|Organisation||Department of Business Economics|
Aleksanyan, M., Hao, Z., Vagenas-Nanos, E., & Verwijmeren, P. (2020). Do state visits affect cross-border mergers and acquisitions. Journal of Corporate Finance, Accepted. Retrieved from http://hdl.handle.net/1765/132127