Cross-border takeovers, corruption, and related aspects of governance

• 成果类型: Article
• 署名作者: Weitzel, Utz; Berns, Sjors
• 署名单位: Utrecht University; Deloitte Touche Tohmatsu Limited
• 刊物名称: JOURNAL OF INTERNATIONAL BUSINESS STUDIES
• ISSN/ISSBN: 0047-2506
• DOI: 10.1057/palgrave.jibs.8400225
• 发表日期: 2006
• 页码: 786-806
• 关键词: corruption; Mergers and Acquisitions; Multinational enterprise; governance; Foreign direct investment; institutions

摘要

We use a panel of 4979 cross-border and domestic takeovers to test the relation between host country corruption and premiums paid for local targets. Host country corruption is negatively associated with target premiums, after correcting for other governance-related factors such as political stability, legal systems, and financial disclosure standards. We estimate that deterioration in the corruption index by one point ( on a 10-point scale) is, on average, associated with a reduction of 21% of local targets' premiums. Our results do not support the notion that local corruption constitutes a significant market barrier to foreign investors; rather, it represents a discount on local takeover synergies, which affects foreign and domestic acquirers alike. However, we find that the major effects of corruption can alternatively be explained by government effectiveness, pointing towards an endogenous relationship between bribery and bureaucracy.