This study identifies how country differences on a key cultural dimension—egalitarianism—influence international investment flows. A society's cultural orientation toward egalitarianism is manifested by intolerance for abuses of market and political power and a desire for protecting less...

The relationship between Russia and Romania is very interesting and by analyzing its economical, geopolitical, historical and cultural components one may understand why Russia has a strategic interest in Romania’s key industries like the energy and steel sectors. This paper aims to find some...

The Austrian companies present in Romania have learned their lessons after the subprime crisis started in year 2008 and although operating in various industrial areas and therefore being differently affected by the crisis, they have followed rather a similar strategy. Despite the unfavourable...

In this paper, I investigate the influence of tax incentives on the financial structures of mergers and acquisitions (M&A) conducted by multinational entities (MNE). Previous research has already found evidence for tax avoidance by debt shifting. I analyze the importance of locating debt at...

Most often, the competition authorities approve combinations based on the tradeoff between the expected efficiency gains and the likely effect on market power creation. However, the realities may be different from the expected synergy creation since merger regulations are ex ante in nature. The...

Most often, the competition authorities approve combinations based on the tradeoff between the expected efficiency gains and the likely effect on market power creation. However, the realities may be different from the expected synergy creation since merger regulations are ex ante in nature. The...

The present paper applies a gravity model with fixed country effects to M&A flows on a sample of 1215 pairs of countries over the 1998-2001 period, to test the impact of European integration. That model, which had to our knowledge not been applied to M&A flows so far, allows us to observe that...

Increasingly, developing countries embrace foreign direct investment (FDI) and simultaneously pursue economic integration with developed countries. Foreign investment is subject to sovereign risk and free trade agreements may serve as a commitment mechanism in order to achieve higher sustainable...

In this paper, we evaluate the impact of creditor rights and political risk on both the number and the value of cross-border M&A flows in a gravity model using a negative binomial model and Heckman’s two-stage selection model, respectively. Our results confirm that creditor-friendly rules and...

The present paper applies a gravity model with fixed country effects to M&A flows on a sample of 1215 pairs of countries over the 1998-2001 period, to test the impact of European integration. That model, which had to our knowledge not been applied to M&A flows so far, allows us to observe that...