Cross‐Border M&A Inflows and Quality of Country Governance: Developing Versus Developed Countries

18 Pages Posted: 11 Dec 2011

See all articles by Jung Hur

Jung Hur

affiliation not provided to SSRN

Rasyad Parinduri

affiliation not provided to SSRN

Yohanes E. Riyanto

Nanyang Technological University (NTU) - Division of Economics

Date Written: December 2011

Abstract

This paper provides an empirical explanation to the observed disparity in cross‐border merger and acquisition inflows to developing and developed countries over the past two decades. We show two main results. First, the disparity can be attributed to the difference in the quality of institutions between the two groups of countries. Second, the gain from reforming institutions in developing countries is smaller than that in developed countries. These findings suggest that, with the current speed of institutional reforms in some developing countries, the disparity in cross‐border merger and acquisition inflows is likely to persist.

Suggested Citation

Hur, Jung and Parinduri, Rasyad and Riyanto, Yohanes E., Cross‐Border M&A Inflows and Quality of Country Governance: Developing Versus Developed Countries (December 2011). Pacific Economic Review, Vol. 16, Issue 5, pp. 638-655, 2011. Available at SSRN: https://ssrn.com/abstract=1970736 or http://dx.doi.org/10.1111/j.1468-0106.2011.00568.x

Jung Hur

affiliation not provided to SSRN

Rasyad Parinduri

affiliation not provided to SSRN

Yohanes E. Riyanto

Nanyang Technological University (NTU) - Division of Economics ( email )

HSS 04-53, 14 Nanyang Drive
Singapore, 639798
Singapore

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