Network Determinants of Cross-Border Merger and Acquisition Decisions /

This paper assesses whether cross-border M and A decisions exhibit network effects. We estimate exponential random graph models (ERGM) and temporal exponential random graph models (TERGM) to evaluate the determinants of cross-country M and A investments at the sectoral level. The results show that t...

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Bibliografiske detaljer
Hovedforfatter: Didier, Tatiana
Andre forfattere: Herrador, Sebastian, Pinat, Magali
Format: Tidsskrift
Sprog:English
Udgivet: Washington, D.C. : International Monetary Fund, 2019.
Serier:IMF Working Papers; Working Paper ; No. 2019/264
Online adgang:Full text available on IMF
Beskrivelse
Summary:This paper assesses whether cross-border M and A decisions exhibit network effects. We estimate exponential random graph models (ERGM) and temporal exponential random graph models (TERGM) to evaluate the determinants of cross-country M and A investments at the sectoral level. The results show that transitivity matters: a country is more likely to invest in a new destination if one of its existing partners has already made some investments there. In line with the literature on export platforms and informational barriers, we find a sizable impact of third country effects on the creation of new investments. This effect is sizable and larger than some of the more traditional M and A determinants, such as trade openness.
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Fysisk beskrivelse:1 online resource (43 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Adgang:Electronic access restricted to authorized BRAC University faculty, staff and students