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

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  • Lina M. Cortés
  • Iván A. Durán
  • Sandra Gaitán
  • Mateo Vasco

Abstract

This article examines the impact of industrial productivity in the country of origin on transnationals M&As, directed from OECD countries toward Latin America in the period 1996–2010. It also analyzes the relationship between external mechanisms of corporate governance and transnational M&As. Employing a gravitational model at the industry level, we find that industry productivity in the country of origin promotes transnational M&A activity, although capital productivity affects it negatively. We also find evidence that higher standards of corporate governance in both origin and destination countries increase the likelihood of transnational M&As taking place.

Suggested Citation

  • Lina M. Cortés & Iván A. Durán & Sandra Gaitán & Mateo Vasco, 2017. "Mergers and Acquisitions in Latin America: Industrial Productivity and Corporate Governance," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 53(10), pages 2179-2198, October.
    • Handle: RePEc:mes:emfitr:v:53:y:2017:i:10:p:2179-2198
    DOI: 10.1080/1540496X.2016.1258358
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    More about this item

    JEL classification:

    • F30 - International Economics - - International Finance - - - General
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm

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