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Geopolitical risk and M&A: The role of national governance institutions
Journal article   Open access  Peer reviewed

Geopolitical risk and M&A: The role of national governance institutions

Sandeep Rao, Santosh Koirala, Sulaiman Aldhawyan and Shaen Corbet
Economics letters, Vol.225, p.111062
04/2023
DOI: https://doi.org/10.1016/j.econlet.2023.111062

Abstract

Geopolitical risk Governance Mergers and acquisitions National institutions
Examining nineteen emerging economies from 1990 to 2018, we identify a positive effect of geopolitical risk on mergers and acquisition (M&A) deal frequency, driven mainly by an increase in domestic M&A. However, we find a negative effect of geopolitical risk on the M&A deal size, highlighting the deadweight cost created by the geopolitical risk. The quality of national governance moderates the deterring effect of geopolitical risk.
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https://doi.org/10.1016/j.econlet.2023.111062View
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