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How Are the Determinants of Emerging Asia's Cross-Border Mergers and Acquisitions Inflows Different from Outflows?

Author

Listed:
  • Qin Liang

    (Central University of Finance and Economics Beijing, China Author email: liangqin0729@163.com)

  • Ningxu Li

    (Central University of Finance and Economics Beijing, China Author email: sandylucky2008@126.com)

  • Jie Li

    (Central University of Finance and Economics Beijing, China Author email: jieli.cn@gmail.com)

Abstract

This paper investigates whether the determinants of mergers and acquisitions (M&A) inflows are different from those of outflows in emerging Asia. We use an augmented gravity model with bilateral cross-border M&A data from 2000 to 2015 for 13 emerging Asian countries. We find that the stock market size of the source country matters for both M&A inflows and outflows. In addition, the motives of firms seeking foreign markets, natural resources, and lower labor costs drive both M&A inflows and outflows. Finally, both the bank credit and the stock market liquidity of the source country play important roles in M&A inflows only, not in M&A outflows.

Suggested Citation

  • Qin Liang & Ningxu Li & Jie Li, 2018. "How Are the Determinants of Emerging Asia's Cross-Border Mergers and Acquisitions Inflows Different from Outflows?," Asian Economic Papers, MIT Press, vol. 17(1), pages 123-144, Winter/Sp.
    • Handle: RePEc:tpr:asiaec:v:17:y:2018:i:1:p:123-144
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    References listed on IDEAS

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