Cross border mergers and acquisitions and default risk
Cross border mergers and acquisitions and default risk
Files
Date
2013-12-11
Authors
Koerniadi, H
Krishnamurti, C
Tourani Rad, A
Supervisor
Item type
Conference Contribution
Degree name
Journal Title
Journal ISSN
Volume Title
Publisher
The Indonesian Financial Management Association (IFMA)
Abstract
Using a cross-country sample of mergers and acquisitions, we examine the role of cultural, institutional, geographic and managerial factors on post-merger default risk. We find that cultural factors, especially the relative difference in uncertainty avoidance between the acquiring and target country, play a significant role in affecting post-merger default risk. Furthermore, we find that institutional quality affects the post-merger default risk of acquiring firms. In contrast to the prior research we do not find any evidence indicating that managerial incentives drive post-merger default risk changes. Also, we do not find any evidence indicating the relevance of geographic distance on default risk.
Description
Keywords
Cross-border mergers , Default risk , Idiosyncratic risk
Source
The First International Conference on Finance and Banking held at Grand Inna Bali Hotel, Bali, Indonesia, 2013-12-11 to 2013-12-12
Publisher's version
Rights statement
NOTICE: this is the author’s version of a work that was accepted for publication. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in (see Citation). The original publication is available at (see Publisher's Version).