Abstract
This study attempts to explore the role of financial development on cross-border mergers and acquisitions (M&As) in 21 selected countries. Based on the sample period of 12 years (2000–2011), the data were analyzed by using dynamic panel data generalized method of moment (GMM) estimator. Interestingly, we find that cross-border M&As respond positively and significantly to the stock market capitalization. The result highlights the importance of domestic financial conditions in stimulating an outward cross-border M&As during this period. Furthermore, the study also reveals evidence that market size (GDP) for home and host countries, inflation rate, and global economic crisis 2007/2008 are statistically significant in influencing cross-border M&As from these selected countries.
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Nasir, N.S.M., Kadir, N., Nayan, S. (2016). The Role of Financial Development on Cross-Border Mergers and Acquisitions: Evidence from Panel Data. In: Mohd Sidek, N., Ali, S., Ismail, M. (eds) Proceedings of the ASEAN Entrepreneurship Conference 2014. Springer, Singapore. https://doi.org/10.1007/978-981-10-0036-2_20
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DOI: https://doi.org/10.1007/978-981-10-0036-2_20
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