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Institutional investors and cross‐border mergers and acquisitions: The 2000–2018 period

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  • Jinsuk Yang
  • Qing Hao
  • Mahmut Yaşar

Abstract

Using a sample of mergers and acquisitions (M&As) from 26 countries over 2000–2018, we find that domestic institutional investors facilitate both domestic and cross‐border M&As. The facilitation effect is more pronounced for domestic than cross‐border M&As. When the acquirer country has greater financial freedom or better investor protection than the target country, domestic institutional investors facilitate cross‐border M&As more effectively. As Ordinary Least Squares regressions are not the best approach regarding cross‐border M&As, we confirm that the main results are robust to Zero‐inflated Poisson regressions. Foreign institutional investors' influence on cross‐border M&As is stronger when the sample excludes the United States.

Suggested Citation

  • Jinsuk Yang & Qing Hao & Mahmut Yaşar, 2023. "Institutional investors and cross‐border mergers and acquisitions: The 2000–2018 period," International Review of Finance, International Review of Finance Ltd., vol. 23(3), pages 553-583, September.
    • Handle: RePEc:bla:irvfin:v:23:y:2023:i:3:p:553-583
    DOI: 10.1111/irfi.12409
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