{
  "title": "International Corporate Governance Spillovers: Evidence from Cross-Border Mergers and Acquisitions",
  "publication": "IMF Working Papers, November 12, 2013",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/international-corporate-governance-spillovers-evidence-from-cross-border-mergers-and-41049",
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  "summary": "We develop and test the hypothesis that foreign direct investment promotes corporate governance spillovers in the host country.",
  "sections": [
    {
      "heading": "Authors and publication",
      "content": "- By Rui Albuquerque, Miguel A. Ferreira, Pedro Matos\n- November 12, 2013\n- IMF Working Papers, Working Paper No. 2013/234\n- Pages: 41\n- Volume: 2013\n- Issue: 234\n- DOI: https://doi.org/10.5089/9781475518382.001\n- Stock No: WPIEA2013234\n- ISBN: 9781475518382\n- ISSN: 1018-5941"
    },
    {
      "heading": "Research question and hypothesis",
      "content": "- Hypothesis: Foreign direct investment promotes corporate governance spillovers in the host country.\n- Empirical focus: Whether cross-border mergers and acquisitions (M&A) are associated with improvements in governance, valuation, and productivity of target firms’ local rivals."
    },
    {
      "heading": "Data and scope",
      "content": "- Firm-level data on cross-border mergers and acquisitions and corporate governance.\n- Coverage: 22 countries."
    },
    {
      "heading": "Key findings",
      "content": "- Cross-border M&As are associated with subsequent improvements in:\n  - Governance of target firms’ local rivals.\n  - Valuation of target firms’ local rivals.\n  - Productivity of target firms’ local rivals.\n- The positive spillover effect is stronger when:\n  - The acquirer is from a country with stronger shareholder protection.\n  - The target’s industry is more competitive.\n- Conclusion: The international market for corporate control promotes the adoption of better corporate governance practices around the world."
    },
    {
      "heading": "Subjects and keywords",
      "content": "- Subject: Balance of payments, Competition, Corporate governance, Economic sectors, Financial markets, Foreign direct investment, Market capitalization, Production, Productivity\n- Keywords: acquirer firm, acquisitions, Competition, Corporate governance, Cross border mergers, cross-border m&a, Foreign direct investment, Global, governance attribute, industry classification, investor protection, Market capitalization, panel regression, Productivity, spillover effect, Spillovers, target firm, WP"
    },
    {
      "heading": "Policy implications and interpretation",
      "content": "- Foreign direct investment through cross-border M&A can be a channel for transmitting stronger corporate governance practices to host-country firms.\n- Greater investor protection in acquirer countries enhances governance spillovers.\n- Competitive industry environments amplify the transmission of governance improvements.\n\nInternational Corporate Governance Spillovers: Evidence from Cross-Border Mergers and Acquisitions, IMF Working Papers 2013/234\n\n---\n\n Content in this bundle\n\n- wp13234\n  - wp13234 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp13234 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/international-corporate-governance-spillovers-evidence-from-cross-border-mergers-and-41049"
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    "Authors: Rui Albuquerque, Miguel A. Ferreira, Pedro Matos",
    "Published: November 12, 2013",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781475518382.001",
    "By Rui Albuquerque, Miguel A. Ferreira, Pedro Matos",
    "November 12, 2013",
    "IMF Working Papers, Working Paper No. 2013/234",
    "Pages: 41",
    "Volume: 2013",
    "Issue: 234",
    "DOI: https://doi.org/10.5089/9781475518382.001",
    "Stock No: WPIEA2013234",
    "ISBN: 9781475518382",
    "ISSN: 1018-5941",
    "Hypothesis: Foreign direct investment promotes corporate governance spillovers in the host country.",
    "Empirical focus: Whether cross-border mergers and acquisitions (M&A) are associated with improvements in governance, valuation, and productivity of target firms’ local rivals.",
    "Firm-level data on cross-border mergers and acquisitions and corporate governance.",
    "Coverage: 22 countries.",
    "Cross-border M&As are associated with subsequent improvements in:",
    "The positive spillover effect is stronger when:",
    "Conclusion: The international market for corporate control promotes the adoption of better corporate governance practices around the world.",
    "Subject: Balance of payments, Competition, Corporate governance, Economic sectors, Financial markets, Foreign direct investment, Market capitalization, Production, Productivity",
    "Keywords: acquirer firm, acquisitions, Competition, Corporate governance, Cross border mergers, cross-border m&a, Foreign direct investment, Global, governance attribute, industry classification, investor protection, Market capitalization, panel regression, Productivity, spillover effect, Spillovers, target firm, WP",
    "Foreign direct investment through cross-border M&A can be a channel for transmitting stronger corporate governance practices to host-country firms.",
    "Greater investor protection in acquirer countries enhances governance spillovers.",
    "Competitive industry environments amplify the transmission of governance improvements.",
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