RESEARCH ARTICLE
International mergers and acquisitions and institutional differences: An integrated approach
Andrzej Cieślik,
Monika Tarsalewska,
Corresponding Author
Andrzej Cieślik
Faculty of Economic Sciences, University of Warsaw, Warszawa, Poland
Correspondence
Andrzej Cieślik, Faculty of Economic Sciences, University of Warsaw, Ul. Długa 44/50, Warszawa 00-241, Poland.
Email: [email protected]
Search for more papers by this authorMonika Tarsalewska
Faculty of Environment, Science and Economics, University of Exeter Business School, Exeter, UK
Search for more papers by this authorAndrzej Cieślik,
Monika Tarsalewska,
Corresponding Author
Andrzej Cieślik
Faculty of Economic Sciences, University of Warsaw, Warszawa, Poland
Correspondence
Andrzej Cieślik, Faculty of Economic Sciences, University of Warsaw, Ul. Długa 44/50, Warszawa 00-241, Poland.
Email: [email protected]
Search for more papers by this authorMonika Tarsalewska
Faculty of Environment, Science and Economics, University of Exeter Business School, Exeter, UK
Search for more papers by this authorFirst published: 30 August 2024
Abstract
In this paper we study the role of institutional differences in bilateral mergers and acquisitions (M&As) in an integrated framework. We contribute to the literature on the drivers of international M&As by integrating the gravity, knowledge-capital (KK) and political economy theory (PET) approaches and explain cross-border M&As using an international and comprehensive dataset. We estimate the model using Poisson Pseudo Maximum Likelihood (PPML) method with high dimension fixed effects. The main findings are that the variables that affect cross-border M&As can be derived from three different approaches explaining activity of multinational enterprises (MNEs): the gravity equation, the KK model, and the PET frameworks. In particular, variables related to geographical proximity, size and similarity of markets and differences in regulatory quality are important in explaining M&A activity.
CONFLICT OF INTEREST STATEMENT
The authors declare no conflict of interest.
Open Research
DATA AVAILABILITY STATEMENT
The main data that support the findings of this study are available from Bureau van Djik Zephyr database and are subject to fees.
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