Worldwide board reforms and cross-border M&A flows
Abstract
This study examines the influence of global board reforms on cross-border mergers and acquisitions (CBMAs). Using a difference-in-differences methodology, we find that CBMA flows increase significantly following board reforms in both home and host countries. The effect is more pronounced for countries with relatively weaker external governance mechanisms compared to their counterparts. Our findings suggest that board reforms enhance board functions, thereby facilitating firms' outbound investments. Simultaneously, improved board governance mitigates acquisition risks, attracting inward investments and, consequently, stimulating CBMA flows.
Fields of Study & Subjects
Corporate Finance and Governance
Corporate Insolvency and Governance
Corporate Governance and Law
Publication details
- Journal / source
- Journal of Corporate Finance
- Publisher
- Elsevier BV
- Volume
- 98
- Pages
- 102970–102970
- Publication date
- 26 January 2026
- Language
- EN