 Institutional distance and cross-border M&A performance: A dynamic perspectiveWanli Li, Chaohui Wang, Qizhe Ren and Ding Zhao Journal of International Financial Markets, Institutions and Money, 2020, vol. 66, issue C Abstract: Combining institutional theory and the knowledge-based theory of the firm, this study thoroughly analyzes the complicated effects of formal and informal institutional distance on firms’ short-term and long-term cross-border M&A performance. Using a sample of emerging market firms’ cross-border M&As from 2002 to 2016, the empirical results suggest that (1) the formal institutional distance has a significant negative effect on firms’ cross-border M&A performance in the short term and a significant positive effect in the long term and that (2) the informal institutional distance has a significant positive effect on firms’ cross-border M&A performance in the short term and a significant negative effect in the long term. Additionally, this study finds significant effects of the host country’s economic development, state ownership of the acquirer, acquirer firm size and M&A deal size. Some suggestions for future studies are proposed. Keywords: Institutional distance; M&A performance; Institutional arbitrage; Knowledge-based view of the firm (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:intfin:v:66:y:2020:i:c:s1042443120300913 DOI: 10.1016/j.intfin.2020.101207 Access Statistics for this article Journal of International Financial Markets, Institutions and Money is currently edited by I. Mathur and C. J. Neely More articles in Journal of International Financial Markets, Institutions and Money from Elsevier |
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