Merger and acquisition FDI, relative wealth and relative access to bank credit: Evidence from a bivariate zero-inflated count model

Woon-Yee Ho, Peiming Wang and Joseph Dennis Alba

International Review of Economics & Finance, 2009, vol. 18, issue 1, pages 26-30

Abstract: We use a bivariate zero-inflated negative binomial model to examine Japanese merger and acquisition (M&A) FDI jointly with other types of Japanese FDI (or non-M&A FDI) into the United States. We find that for firms likely to engage in FDI, their rates of FDI are affected by the financial health of their main banks. However, only the rate of M&A FDI is affected by relative wealth. The rate of non-M&A FDI is affected by profitability and firm size. Our findings show the importance of distinguishing M&A FDI from non-M&A FDI and of considering the two types of FDI jointly.

Keywords: F31; F36; G21; Merger; and; acquisition; FDI; Relative; access; to; bank; credit; Relative; wealth; Bivariate; zero-inflated; negative; binomial; model (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/B6W4V ... 2ef79954721355ad0a3a
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:eee:reveco:v:18:y:2009:i:1:p:26-30

Access Statistics for this article

International Review of Economics & Finance is edited by H. Beladi and C. Chen

More articles in International Review of Economics & Finance from Elsevier
Series data maintained by Wendy Shamier ().