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Cooperative governance or profit extraction: the exit threat of non-controlling major shareholders and corporate cross-border M&A behavior

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  • Li, Yanting
  • Yu, Kaijie

Abstract

This study uses panel data from listed companies over the period 2013–2022 to analyze, both theoretically and empirically, the impact of the exit threat posed by non-controlling majority shareholders on corporate cross-border M&A. The results indicate that the exit threat from non-controlling major shareholders significantly promotes cross-border M&A, with this effect being more pronounced in labor-intensive industries and firms with strong market power. Additionally, higher risk tolerance and the involvement of female executives can enhance the positive impact of non-controlling major shareholders’ exit threat on corporate cross-border M&A.

Suggested Citation

  • Li, Yanting & Yu, Kaijie, 2025. "Cooperative governance or profit extraction: the exit threat of non-controlling major shareholders and corporate cross-border M&A behavior," Finance Research Letters, Elsevier, vol. 85(PB).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pb:s1544612325012449
    DOI: 10.1016/j.frl.2025.107986
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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