International Corporate Governance Spillovers: Evidence from Cross-Border Mergers and Acquisitions

• 成果类型: Article
• 署名作者: Albuquerque, Rui; Brandao-Marques, Luis; Ferreira, Miguel A.; Matos, Pedro
• 署名单位: Boston College; European Corporate Governance Institute; International Monetary Fund; Universidade Nova de Lisboa; University of Virginia
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhy053
• 发表日期: 2019
• 页码: 738
• 关键词: direct foreign-investment; domestic firms; MARKET; PRODUCTIVITY; PROTECTION; US; externalities; determinants

摘要

We test the hypothesis that foreign direct investment promotes corporate governance spillovers in the host country. Using firm-level data from 64 countries during the period 2005-2014, we find that cross-border M&A activity is associated with subsequent improvements in the governance of nontarget firms when the acquirer country has stronger investor protection than the target country. The effect is more pronounced when the target industry is more competitive. Cross-border M&As are also associated with increases in investment and valuation of nontarget firms. Alternative explanations, such as access to global financial markets and cultural similarities, do not appear to explain our findings.