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The border effect on mergers and acquisitions

Author

Listed:
  • Federico Carril-Caccia

    (University of Granada
    Deusto Business School)

  • Aitor Garmendia-Lazcano

    (Deusto Business School)

  • Asier Minondo

    (Deusto Business School)

Abstract

Using a firm-level dataset of more than 500,000 domestic and cross-border mergers and acquisitions (M&As) for 95 countries during the period 1995–2015, we measure the level and evolution of the border effect on M&As. We find that the number and value of M&As between same-country firms are five times larger than between firms of different countries. We show that the border effect on the number and value of M&As remained constant during the period. The border effect on M&As in the European Union is substantially lower than elsewhere. We find that the border effect is lower for large investors and firms operating in the primary industry and utilities.

Suggested Citation

  • Federico Carril-Caccia & Aitor Garmendia-Lazcano & Asier Minondo, 2022. "The border effect on mergers and acquisitions," Empirical Economics, Springer, vol. 62(3), pages 1267-1292, March.
    • Handle: RePEc:spr:empeco:v:62:y:2022:i:3:d:10.1007_s00181-021-02050-2
    DOI: 10.1007/s00181-021-02050-2
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    Cited by:

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    2. Jan Malek & Melissa Newham & Jo Seldeslachts & Reinhilde Veugelers, 2024. "Acquiring R&D Projects: Who, When, and What? Evidence from Antidiabetic Drug Development," Discussion Papers of DIW Berlin 2073, DIW Berlin, German Institute for Economic Research.
    3. Federico Carril-Caccia & Jordi Paniagua & Marta Suarez-Varela, 2022. "Forced migration and food crises," Working Papers 2022.06, International Network for Economic Research - INFER.

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