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Do all networks facilitate international commerce? US law firms and the international market for corporate control

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  • Simon J. Evenett

Abstract

This paper estimates the effects of several American law firms' international networks of offices on the total value of overseas mergers and acquisitions (M&A) by US corporations. Nowadays many nations can review proposed mergers and US law firms help clients overcome such regulatory hurdles, effectively greasing the market for corporate control. However, they can also oppose transactions that are inimical to their clients' interests. I present evidence that suggests that Baker & McKenzie the US law firm with the most overseas offices has facilitated such transactions, whereas the combined effect of the next five largest American law firms has tended to reduce such M&A.

Suggested Citation

  • Simon J. Evenett, 2003. "Do all networks facilitate international commerce? US law firms and the international market for corporate control," NBER Working Papers 9663, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:9663
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    References listed on IDEAS

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    1. Eduardo Levy Yeyati & Christian Daude & Ernesto Stein, 2003. "Regional Integration and the Location of FDI," Business School Working Papers doce, Universidad Torcuato Di Tella.
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    Cited by:

    1. Harry Huizinga & Johannes Voget & Wolf Wagner, 2014. "International Taxation and Cross-Border Banking," American Economic Journal: Economic Policy, American Economic Association, vol. 6(2), pages 94-125, May.
    2. Joan-Ramon Borrell & Juan Luis Jiménez & Carmen García, 2014. "Evaluating Antitrust Leniency Programs," Journal of Competition Law and Economics, Oxford University Press, vol. 10(1), pages 107-136.
    3. Mathur MAYANK, 2020. "Macroeconomic View of Mergers and Acquisitions in the Technology Industry," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 1, pages 147-155.
    4. Simon Evenett, 2004. "The Cross-Border Mergers and Acquisitions Wave of the Late 1990s," NBER Chapters, in: Challenges to Globalization: Analyzing the Economics, pages 411-467, National Bureau of Economic Research, Inc.
    5. Joshua J. Lewer & Hendrik Van den Berg, 2007. "Religion and International Trade: Does the Sharing of a Religious Culture Facilitate the Formation of Trade Networks?," American Journal of Economics and Sociology, Wiley Blackwell, vol. 66(4), pages 765-794, October.

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    More about this item

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • L4 - Industrial Organization - - Antitrust Issues and Policies

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