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The impact of migrants on the cross-border M&A: Some evidence for Japan

Author

Listed:
  • Etzo, Ivan
  • Takaoka, Sumiko

Abstract

Japanese outbound M&A activity has been running at a record pace regardless of the exchange rate movements. This paper examines the determinants of Japanese outbound M&A activity and the link between the migrants, which refer to both immigrants and Japanese citizens residing abroad, and Japanese outbound cross-border M&A activity in order to investigate whether immigrants alleviate the informational problems and stimulate the cross-border M&A activity with their host countries. Our results suggest that both immigrant and Japanese citizens residing abroad increase the probability of acquiring the asset in a potential target country. Moreover, both stocks have also a positive effect on the number of outbound M&A deals and the value of outbound M&A deals.

Suggested Citation

  • Etzo, Ivan & Takaoka, Sumiko, 2016. "The impact of migrants on the cross-border M&A: Some evidence for Japan," MPRA Paper 71558, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:71558
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    References listed on IDEAS

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    More about this item

    Keywords

    Country risk; Cross-border M&A; Exchange rate; Migration;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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