Do state visits affect cross-border mergers and acquisitions

M Aleksanyan, Z Hao, E Vagenas-Nanos, Patrick Verwijmeren

Research output: Contribution to journalArticleAcademicpeer-review

5 Citations (Scopus)

Abstract

This paper studies the relation between state visits and cross-border merger and acquisition (M&A) activity. Based on 1161 state visits and 11,531 cross-border acquisitions, we find that corporations from visiting countries are more likely to acquire corporations in countries hosting the visit. Domestic acquisitions in the host country or M&As with non-visiting countries are not elevated. Evidence from instrumental variable analysis points towards a causal effect of state visits on M&A activity. Further analysis shows that the elevated M&A activity originating from visiting countries can be attributed to business networking and a reduction in investment uncertainty and cultural barriers.

Original languageEnglish
Article number101800
JournalJournal of Corporate Finance
Volume66
DOIs
Publication statusPublished - Feb 2021

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