Determinants of a Cross Border Merger and Acquisition Decision: A Literature Review

Abstract

This paper aims to explore, consolidate, and comprehend the determinants that impact a cross border merger and acquisition decision. We mainly research past studies performed in the last decade that have identified several factors affecting the merger decision. By integrating the research findings from prior research, we propose developing a clear understanding of the factors that determine a merger decision. Many factors like characteristics of the CEO of the target and the acquiring company have also been summarized in this paper, which have not been consolidated by previous studies. Studying the market and economic conditions of host and home countries can provide an insight into the investment decision. This can apprise policy makers, investors, and stakeholders to work on policies and regulations that would boost inward and outward deals.