Mergers and Acquisitions in Latin America: Industrial Productivity and Corporate Governance |
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Authors: | Lina M Cortés Iván A Durán Sandra Gaitán Mateo Vasco |
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Institution: | 1. Department of Finance, School of Economics and Finance, Universidad EAFIT, Medellin, Colombia;2. Department of Finance, Prince Sultan University, Riyadh, Saudi Arabia |
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Abstract: | This article examines the impact of industrial productivity in the country of origin on transnationals M&As, directed from OECD countries toward Latin America in the period 1996–2010. It also analyzes the relationship between external mechanisms of corporate governance and transnational M&As. Employing a gravitational model at the industry level, we find that industry productivity in the country of origin promotes transnational M&A activity, although capital productivity affects it negatively. We also find evidence that higher standards of corporate governance in both origin and destination countries increase the likelihood of transnational M&As taking place. |
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Keywords: | corporate governance industry productivity mergers and acquisitions |
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