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Cross-border mergers and acquisitions activity in the tourism industry: A spatial econometrics analysis

Author

Listed:
  • Muhammad Farooq Ahmad

    (SKEMA Business School - SKEMA Business School)

  • Christos Alexakis

    (ESC [Rennes] - ESC Rennes School of Business)

  • Saqib Aziz

    (ESC [Rennes] - ESC Rennes School of Business)

  • Konstantinos Eleftheriou

    (University of Piraeus)

Abstract

The tourism industry is one of the largest sectors of the international economy with a 10.3 percent share in global GDP while cross-border mergers and acquisitions (M&A) activity contributes 42–45 percent to aggregate foreign direct investment (FDI) flows. However, little is known about the extent to which tourism activity may affect cross-border M&A activity. We employ a spatial econometrics framework over a sample of 3849 M&A transactions from 34 countries to examine the role of tourism activity in cross-border M&A in the tourism sector. Our results indicate that tourism activity reduces M&As investment uncertainty. In addition, cultural distance negatively affects tourism's role as a channel for M&A activity.

Suggested Citation

  • Muhammad Farooq Ahmad & Christos Alexakis & Saqib Aziz & Konstantinos Eleftheriou, 2025. "Cross-border mergers and acquisitions activity in the tourism industry: A spatial econometrics analysis," Post-Print hal-05068471, HAL.
    • Handle: RePEc:hal:journl:hal-05068471
    DOI: 10.1016/j.ijhm.2025.104238
    Note: View the original document on HAL open archive server: https://hal.science/hal-05068471v1
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    References listed on IDEAS

    as
    1. Ahmad, Muhammad Farooq & Lambert, Thomas, 2019. "Collective bargaining and mergers and acquisitions activity around the world," Journal of Banking & Finance, Elsevier, vol. 99(C), pages 21-44.
    2. Muhammad Farooq Ahmad & Eric de Bodt & Jarrad Harford & David Denis, 2021. "International Trade and the Propagation of Merger Waves," The Review of Financial Studies, Society for Financial Studies, vol. 34(10), pages 4876-4925.
    3. Ahern, Kenneth R. & Daminelli, Daniele & Fracassi, Cesare, 2015. "Lost in translation? The effect of cultural values on mergers around the world," Journal of Financial Economics, Elsevier, vol. 117(1), pages 165-189.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Tourism industry Mergers and acquisitions Cross-border deals Spatial econometrics;

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