Terrorism and cross-border mergers and acquisitions

Edward R. Lawrence, Mehul Raithatha and Iván M. Rodríguez

Global Finance Journal, 2025, vol. 67, issue C

Abstract: We analyze the impact of terrorism on cross-border mergers and acquisitions (M&As) and find that terrorist attacks in acquirer and target countries significantly influence both the initiation and completion of M&As. While the presence of terrorism deters deal initiation, it paradoxically increases the likelihood of deal completion, suggesting a complex interplay of risk assessment and strategic decision-making. Furthermore, we find that firms accelerate completion after terrorist attacks.

Keywords: Mergers and acquisitions; International M&a; Terrorism; Cross-border M&A (search for similar items in EconPapers)
JEL-codes: G14 G15 G34 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:glofin:v:67:y:2025:i:c:s1044028325000730

DOI: 10.1016/j.gfj.2025.101146

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