The Liberalisation of Foreign Ownership and Cross-border M&A in South East Asia since the 1997 Financial Crisis

Chris Dixon

Journal of Current Southeast Asian Affairs, 2006, vol. 25, issue 5, 5-41

Abstract: Since 1997 there has been significant liberalisation of foreign ownership regulations in most of the South East Asian economies. This has been associated with some major increases in the level of cross-border Mergers & Aquisitions (M&A). However, the 1997-2001 surge in cross-border M&A activity has to be seen in the context not only of liberalisation, but also of the short-term availability of distressed assets, the lowering of production costs and the final phases of a global FDI boom which had been increasingly driven by M&A. Similarly, the sharp decline in South East Asian cross-border M&A since 2002 can be explained in terms of the acquisition of the most easily purchased attractive assets and the sharp decline in global M&A activity. However, it is argued that post-1997 liberalisation left in place significant barriers to increased foreign ownership and operation in all the South East Asian economies. In addition to continuing direct restrictions on foreign ownership, a wide range of other regulations inhibit cross-border M&A - notably those effecting bankruptcy, M&A procedures and financial reporting. Perhaps more significant are the limitations on foreign ownership and operation that result from ownership patterns, forms of corporate governance, established business practices and the operation of the bureaucratic, judicial and political systems.

Date: 2006
References: Add references at CitEc
Citations: View citations in EconPapers (1)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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: https://EconPapers.repec.org/RePEc:gig:soaktu:v:25:y:2006:i:5:p:5-41

Ordering information: This journal article can be ordered from
http://www.giga-hamburg.de/suedostasien-aktuell

Access Statistics for this article

More articles in Journal of Current Southeast Asian Affairs from Institute of Asian Studies, GIGA German Institute of Global and Area Studies, Hamburg Contact information at EDIRC.
Bibliographic data for series maintained by Marco Bünte ( this e-mail address is bad, please contact ) and Howard Loewen ( this e-mail address is bad, please contact ).