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Does Growth & Quality of Capital Markets drive Foreign Capital? The case of Cross-border Mergers & Acquisitions from leading Emerging Economies

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  • Juan Piñeiro Chousa,

    ()

  • Krishna Chaitanya,

    ()

  • Artur Tamazian

    ()

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    Abstract

    Is there any interrelationship between firm level FDI in the form of cross border Mergers & Acquisitions and capital markets growth and quality? We addressed this question using panel data of cross border M&A for nine emerging economies. Our study period goes from 1987 to 2006. We find that the stock market variables, viz., capitalization and value addition encourage the number of deals and value of cross border Mergers & Acquisitions. However, the association with regulatory and financial reforms is much stronger and robust.

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    File URL: http://www.wdi.umich.edu/files/Publications/WorkingPapers/wp911.pdf
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    Bibliographic Info

    Paper provided by William Davidson Institute at the University of Michigan in its series William Davidson Institute Working Papers Series with number wp911.

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    Length: pages
    Date of creation: 01 Feb 2008
    Date of revision:
    Handle: RePEc:wdi:papers:2008-911

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    Keywords: Financial Markets; Cross border M&A & Emerging Economies.;

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