Cross-border mergers and acquisitions activity in the tourism industry: A spatial econometrics analysis

Muhammad Ahmad, Christos Alexakis (), Saqib Aziz () and Konstantinos Eleftheriou
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Muhammad Ahmad: SKEMA Business School - SKEMA Business School
Christos Alexakis: ESC [Rennes] - ESC Rennes School of Business
Saqib Aziz: ESC [Rennes] - ESC Rennes School of Business

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Abstract: The tourism industry is one of the largest sectors of the international economy with a 10.3 percent share in global GDP while cross-border mergers and acquisitions (M&A) activity contributes 42–45 percent to aggregate foreign direct investment (FDI) flows. However, little is known about the extent to which tourism activity may affect cross-border M&A activity. We employ a spatial econometrics framework over a sample of 3849 M&A transactions from 34 countries to examine the role of tourism activity in cross-border M&A in the tourism sector. Our results indicate that tourism activity reduces M&As investment uncertainty. In addition, cultural distance negatively affects tourism's role as a channel for M&A activity.

Keywords: Tourism; industry; Mergers; and; acquisitions; Cross-border; deals; Spatial; econometrics (search for similar items in EconPapers)
Date: 2025-05-12
Note: View the original document on HAL open archive server: https://hal.science/hal-05068471v1
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Published in International Journal of Hospitality Management, 2025, 130, ⟨10.1016/j.ijhm.2025.104238⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05068471

DOI: 10.1016/j.ijhm.2025.104238

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