Country level determinants, takeover locations, and the gains to target firms

This study enhances the understanding of imperfect factor markets by examining the impact of country-level factors on takeover location decisions and the gains to target firms. The results suggest that the likelihood that a completed deal is a cross-border acquisition rather than a domestic acquisition is higher for target countries with lower government quality, weaker investor protection, stronger restrictions on capital mobility, lower corporate tax rates, and more depreciated currencies.