Cross-Border Mergers and Acquisitions by Financial Institutions: What Explains Deal Premium in Emerging Markets?

Student: Leshchuk Dmitry

Educational Programme: Joint HSE-NES Undergraduate Program in Economics (Bachelor)

Final Grade: 8

Year of Graduation: 2020

We are the first study of our knowledge to consistently examine deal value premium determinants on a broad dataset of financial institution M&As. We construct a unique dataset of 150 M&A deals between 2012 and 2019 with more than 60 countries involved (with more than a half of deals in total involving emerging country banks), exploring 2 specific determinants of cross-border M&A deal premiums: the negative effect of institutional distance (as a result of perceived costs of operating in an unfamiliar environments) and the negative effect of target’s size, associated with possible deal legal complexities in business integration process. Both variables appear significantly negative, the results are robust to selection bias and have some post-COVID19 policy implications

Full text (added June 5, 2020)

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