ABSTRACT
We empirically prove that the negative listing effect of mergers and acquisitions (M&A) is more pronounced in target countries with high gross domestic product (GDP) growth rate uncertainty than in countries without such uncertainty. We examine a sample of 343 non-financial firms that disclosed cross-border M&A between 2000 and 2019 in the Korea Exchange stock market and 49 countries where the target firms are located. We show that the listing effect caused by economic growth uncertainty in the target country is stronger for cross-border M&A during the global financial crisis or when the target firms are based in emerging countries.
Notes
1. The emerging countries are defined as those that do not belong to the Group of Seven (G7), which consists of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States – the seven largest economies in the world.