Examining nineteen emerging economies from 1990 to 2018, we identify a positive effect of geopolitical risk on mergers and acquisition (M&A) deal frequency, driven mainly by an increase in domestic M&A. However, we find a negative effect of geopolitical risk on the M&A deal size, highlighting the deadweight cost created by the geopolitical risk. The quality of national governance moderates the deterring effect of geopolitical risk.
Metadata
Item Type:
Article (Published)
Refereed:
Yes
Additional Information:
Article number: 111062
Uncontrolled Keywords:
Geopolitical risk; Mergers and acquisitions; National institutions; Governance