Mergers and Acquisitions in Latin America: Industrial Productivity and Corporate Governance

32 Pages Posted: 20 Mar 2016

See all articles by Lina Cortes

Lina Cortes

Universidad EAFIT - School of Economics and Finance - Center for Research in Economic & Finance (CIEF)

Ivan Duran

Prince Sultan University

Sandra Constanza Gaitan Riaño

Universidad EAFIT - School of Economics and Finance - Center for Research in Economic & Finance (CIEF)

Mateo Vasco

Universidad EAFIT - School of Economics and Finance - Center for Research in Economic & Finance (CIEF)

Date Written: March 18, 2016

Abstract

This paper examines the impact of industrial productivity on transnationals M&As from OECD countries towards Latin American countries in the period 1996 to 2010. It also analyzes the relationship between external mechanism of corporate governance and transnational M&As. For this purpose we use a gravitational model at the industry level. We find that industry productivity and higher standards of corporate governance in the country of origin promote transnational M&As activity. However, it is also found that higher levels of capital and technological productivity decreases transnational M&As activity.

Keywords: Mergers and Acquisitions, Industry Productivity, Corporate Governance

JEL Classification: F30, G34, L21

Suggested Citation

Cortes, Lina and Duran, Ivan and Gaitan Riaño, Sandra Constanza and Vasco, Mateo, Mergers and Acquisitions in Latin America: Industrial Productivity and Corporate Governance (March 18, 2016). Center for Research in Economics and Finance (CIEF), Working Papers, No. 16-06, Available at SSRN: https://ssrn.com/abstract=2750145 or http://dx.doi.org/10.2139/ssrn.2750145

Lina Cortes (Contact Author)

Universidad EAFIT - School of Economics and Finance - Center for Research in Economic & Finance (CIEF) ( email )

Carrera 49 No. 7 South - 50
Bogotá
Colombia

Ivan Duran

Prince Sultan University ( email )

PO Box 66833
Prince Sultan University
Riyadh, Riyadh 11586
Saudi Arabia

Sandra Constanza Gaitan Riaño

Universidad EAFIT - School of Economics and Finance - Center for Research in Economic & Finance (CIEF) ( email )

Carrera 49 No. 7 South - 50
Bogotá
Colombia

Mateo Vasco

Universidad EAFIT - School of Economics and Finance - Center for Research in Economic & Finance (CIEF) ( email )

Carrera 49 No. 7 South - 50
Bogotá
Colombia

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