Similarities and Differences among Cross-border M&A and Greenfield FDI Determinants

2014 Fiscal Year Final Research Report

• Project/Area Number: 24530357
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Research Field: Public finance/Monetary economics
• Research Institution: Seikei University
• Principal Investigator: NAGANO Mamoru 成蹊大学, 経済学部, 教授 (20508858)
• Co-Investigator(Kenkyū-buntansha): ITAKURA Ken 名古屋市立大学, 大学院経済学研究科, 教授 (90405217)
• Project Period (FY): 2012-04-01 – 2015-03-31
• Keywords: 直接投資 / クロスボーダーM&A / グリーンフィールド直接投資 / 知的財産法制 / 投資家保護法制 / 企業ネットワーク

Outline of Final Research Achievements

In this study, by focusing on emerging countries in Asia and Oceania, we provide empirical evidence of the similarities and differences in cross-border M&A and greenfield FDI determinants. We derive the following four main conclusions. First, an increase in host-country population size and decreases in per capita income and corporate tax rates generally attract both inward cross-border M&A and greenfield FDI to the host country. Second, however, a home-country firm tends to choose cross-border M&A when the host country sufficiently implements shareholder rights laws and the firm tends to choose greenfield FDI when the host country adequately enforces intellectual property rights laws. Third, a firm tends to choose greenfield FDI when the firm already has regional networks in the host country. Finally, a firm pursuing greenfield FDI experiences higher cumulative abnormal returns in its stock prices immediately before the investment.

Free Research Field

新興国市場のファイナンス研究