International Corporate Governance Spillovers : Evidence from Cross-Border Mergers and Acquisitions /
We develop and test the hypothesis that foreign direct investment promotes corporate governance spillovers in the host country. Using firm-level data on cross-border mergers and acquisitions (M and A) and corporate governance in 22 countries, we find that cross-border M and As are associated with su...
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| Other Authors: | , , |
| Format: | Journal |
| Language: | English |
| Published: |
Washington, D.C. :
International Monetary Fund,
2013.
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| Series: | IMF Working Papers; Working Paper ;
No. 2013/234 |
| Online Access: | Full text available on IMF |
| Summary: | We develop and test the hypothesis that foreign direct investment promotes corporate governance spillovers in the host country. Using firm-level data on cross-border mergers and acquisitions (M and A) and corporate governance in 22 countries, we find that cross-border M and As are associated with subsequent improvements in the governance, valuation, and productivity of the target firmsa' local rivals. This positive spillover effect is stronger when the acquirer is from a country with stronger shareholder protection and if the target's industry is more competitive. We conclude that the international market for corporate control promotes the adoption of better corporate governance practices around the world. |
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| Item Description: | <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required |
| Physical Description: | 1 online resource (41 pages) |
| Format: | Mode of access: Internet |
| ISSN: | 1018-5941 |
| Access: | Electronic access restricted to authorized BRAC University faculty, staff and students |