The Effect of Target-Country Institutions on Cross-Border Merger and Acquisition Activity: A Quantitative Literature Survey
In this paper, we synthesize and compare 2,961 estimates extracted from 90 papers on the effect of target-country institutions on cross-border merger and acquisition (CBMA) intensity and premia. The synthesis results show statistically significant effects of institutional quality, cultural similari...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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SGH Warsaw School of Economics, Collegium of Economic Analysis
2022-06-01
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| Series: | Econometric Research in Finance |
| Subjects: | |
| Online Access: | https://www.erfin.org/journal/index.php/erfin/article/view/164 |
| _version_ | 1811344203583586304 |
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| author | Josef C. Brada Ichiro Iwasaki |
| author_facet | Josef C. Brada Ichiro Iwasaki |
| author_sort | Josef C. Brada |
| collection | DOAJ |
| description |
In this paper, we synthesize and compare 2,961 estimates extracted from 90 papers on the effect of target-country institutions on cross-border merger and acquisition (CBMA) intensity and premia. The synthesis results show statistically significant effects of institutional quality, cultural similarity, corruption control, and political stability and effectiveness on CBMA activity, although the economic significance of these effects is modest. Study characteristics such as the choice of target and acquiring countries, estimation techniques, and sample selection strongly influence the effect estimates. Moreover, we examine the literature for the possible influence of publication-selection bias on the estimated effects and conclude that the presence of such bias calls into question whether the literature reports the true effects of institutions on CBMA activity. The results presented in our quantitative literature review suggest further research efforts to identify the true effect size.
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| first_indexed | 2024-04-13T19:43:36Z |
| format | Article |
| id | doaj.art-d07959293b184309ba9ce585b361c325 |
| institution | Directory Open Access Journal |
| issn | 2451-1935 2451-2370 |
| language | English |
| last_indexed | 2024-04-13T19:43:36Z |
| publishDate | 2022-06-01 |
| publisher | SGH Warsaw School of Economics, Collegium of Economic Analysis |
| record_format | Article |
| series | Econometric Research in Finance |
| spelling | doaj.art-d07959293b184309ba9ce585b361c3252022-12-22T02:32:47ZengSGH Warsaw School of Economics, Collegium of Economic AnalysisEconometric Research in Finance2451-19352451-23702022-06-017110.2478/erfin-2022-0001The Effect of Target-Country Institutions on Cross-Border Merger and Acquisition Activity: A Quantitative Literature SurveyJosef C. Brada0Ichiro Iwasaki1Arizona State University, United StatesHitotsubashi University, Japan In this paper, we synthesize and compare 2,961 estimates extracted from 90 papers on the effect of target-country institutions on cross-border merger and acquisition (CBMA) intensity and premia. The synthesis results show statistically significant effects of institutional quality, cultural similarity, corruption control, and political stability and effectiveness on CBMA activity, although the economic significance of these effects is modest. Study characteristics such as the choice of target and acquiring countries, estimation techniques, and sample selection strongly influence the effect estimates. Moreover, we examine the literature for the possible influence of publication-selection bias on the estimated effects and conclude that the presence of such bias calls into question whether the literature reports the true effects of institutions on CBMA activity. The results presented in our quantitative literature review suggest further research efforts to identify the true effect size. https://www.erfin.org/journal/index.php/erfin/article/view/164Cross-Border Merger and AcquisitionInstitutionsForeign Entry ModeMeta-SynthesisMeta-Rregression AnalysisPublication Selection Bias |
| spellingShingle | Josef C. Brada Ichiro Iwasaki The Effect of Target-Country Institutions on Cross-Border Merger and Acquisition Activity: A Quantitative Literature Survey Econometric Research in Finance Cross-Border Merger and Acquisition Institutions Foreign Entry Mode Meta-Synthesis Meta-Rregression Analysis Publication Selection Bias |
| title | The Effect of Target-Country Institutions on Cross-Border Merger and Acquisition Activity: A Quantitative Literature Survey |
| title_full | The Effect of Target-Country Institutions on Cross-Border Merger and Acquisition Activity: A Quantitative Literature Survey |
| title_fullStr | The Effect of Target-Country Institutions on Cross-Border Merger and Acquisition Activity: A Quantitative Literature Survey |
| title_full_unstemmed | The Effect of Target-Country Institutions on Cross-Border Merger and Acquisition Activity: A Quantitative Literature Survey |
| title_short | The Effect of Target-Country Institutions on Cross-Border Merger and Acquisition Activity: A Quantitative Literature Survey |
| title_sort | effect of target country institutions on cross border merger and acquisition activity a quantitative literature survey |
| topic | Cross-Border Merger and Acquisition Institutions Foreign Entry Mode Meta-Synthesis Meta-Rregression Analysis Publication Selection Bias |
| url | https://www.erfin.org/journal/index.php/erfin/article/view/164 |
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