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Bilateral M&A activity from the Global South

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  • Dailami, Mansoor
  • Kurlat, Sergio
  • Lim, Jamus Jerome

Abstract

This paper studies the factors associated with outbound bilateral mergers and acquisitions (M&A) activity by firms located in emerging economies. We document recent trends in emerging market M&A flows, which have risen dramatically over the past decade, and explore the factors that may have contributed to this rise. We find distinct patterns for M&A deals according to whether the acquisition targets are in other emerging economies or advanced countries, and that these differences can be attributed to differing theoretical motivations behind foreign direct investment. We also consider the implications of our model for future M&A originating in the Global South, in light of the global financial crisis of 2008.

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  • Dailami, Mansoor & Kurlat, Sergio & Lim, Jamus Jerome, 2012. "Bilateral M&A activity from the Global South," The North American Journal of Economics and Finance, Elsevier, vol. 23(3), pages 345-364.
    • Handle: RePEc:eee:ecofin:v:23:y:2012:i:3:p:345-364
    DOI: 10.1016/j.najef.2012.03.006
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    Cited by:

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    2. Thenmozhi, M. & Narayanan, P.C., 2016. "Rule of law or country level corporate governance: What matters more in emerging market acquisitions?," Research in International Business and Finance, Elsevier, vol. 37(C), pages 448-463.
    3. Dailami, Mansoor & Adams-Kane, Jonathon, 2012. "What Does the Future Hold for the International Banking System?," World Bank - Economic Premise, The World Bank, issue 94, pages 1-8, October.
    4. Lakicevic, Milan & Shachmurove, Yochanan & Vulanovic, Milos, 2014. "Institutional changes of Specified Purpose Acquisition Companies (SPACs)," The North American Journal of Economics and Finance, Elsevier, vol. 28(C), pages 149-169.
    5. Burns, Andrew & Kida, Mizuho & Lim, Jamus Jerome & Mohapatra, Sanket & Stocker, Marc, 2014. "Unconventional monetary policy normalization in high-income countries : implications for emerging market capital flows and crisis risks," Policy Research Working Paper Series 6830, The World Bank.
    6. Co, Catherine Y. & Nguyen, Thu Kim & Nguyen, Tung Nhu & Tran, Que Nguyet, 2018. "The exporting and subcontracting decisions of Viet Nam's small- and medium-sized enterprises," International Review of Economics & Finance, Elsevier, vol. 58(C), pages 449-466.
    7. Xie, En & Reddy, K.S. & Liang, Jie, 2017. "Country-specific determinants of cross-border mergers and acquisitions: A comprehensive review and future research directions," Journal of World Business, Elsevier, vol. 52(2), pages 127-183.
    8. Lebedev, Sergey & Peng, Mike W. & Xie, En & Stevens, Charles E., 2015. "Mergers and acquisitions in and out of emerging economies," Journal of World Business, Elsevier, vol. 50(4), pages 651-662.
    9. Dodonova, Anna & Khoroshilov, Yuri, 2014. "Can preemptive bidding in takeover auctions be socially optimal? Yes it can," The North American Journal of Economics and Finance, Elsevier, vol. 27(C), pages 34-47.
    10. Didier, Tatiana & Moretti, Matias & Schmukler, Sergio L., 2015. "The changing patterns of financial integration in Latin America," Policy Research Working Paper Series 7190, The World Bank.
    11. Lim, Jamus Jerome & Mohapatra, Sanket, 2016. "Quantitative easing and the post-crisis surge in financial flows to developing countries," Journal of International Money and Finance, Elsevier, vol. 68(C), pages 331-357.
    12. World Bank, 2014. "Global Economic Prospects, January 2014," World Bank Publications - Books, The World Bank Group, number 16572.

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    More about this item

    Keywords

    Mergers and acquisitions; South-South capital flows;

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

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