M&A Motives and Home Country Institutions: Evidence from Asian-Pacific Acquisitions in Europe

25 Pages Posted: 5 Oct 2020

See all articles by Matthew Larsen

Matthew Larsen

University of Auckland Business School

Peter Zamborsky

University of Auckland Business School

Date Written: December 1, 2018

Abstract

With cross-border acquisitions on the rise, especially by multinationals from the Asia-Pacific region, it is important to better understand their motives. Using the Marketline Advantage data on over 700 cross-border acquisitions of European firms by Asian-Pacific multinationals in 2007-2017, we analyse 11 types of rationales for these deals and how they relate to income levels and institutional development of the acquirers’ home countries. We find that the home country development mostly does not affect propensity to invest with a particular motive. However, the quality of the home country’s regulatory environment is significantly and positively related to M&A motives. We conclude with implications for the research on emerging market multinationals, international M&A strategy and outward FDI policies of emerging economies.

Keywords: mergers and acquisitions, international strategy, emerging markets, foreign direct investment, diversification, institutions, acquisition motives, emerging market multinationals

JEL Classification: G34, F63, F21, F23, P48

Suggested Citation

Larsen, Matthew and Zamborsky, Peter, M&A Motives and Home Country Institutions: Evidence from Asian-Pacific Acquisitions in Europe (December 1, 2018). Available at SSRN: https://ssrn.com/abstract=3687480 or http://dx.doi.org/10.2139/ssrn.3687480

Matthew Larsen

University of Auckland Business School

12 Grafton Rd
Private Bag 92019
Auckland, 1010
New Zealand

Peter Zamborsky (Contact Author)

University of Auckland Business School ( email )

12 Grafton Rd
Private Bag 92019
Auckland, 1010
New Zealand

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
27
Abstract Views
214
PlumX Metrics