Impact of Corporate Governance on on Emerging-market Productivity Gains via Cross-border M&As

Abstract

Corporate governance plays an important role in firm development especially in the context of emerging markets where their economy is constantly in transition and characterized with unique complexity. Therefore this chapter examines how emerging-market acquirer’s heterogeneity in corporate governance may possibly affect acquirer’s learning via cross-border MA (2) Regarding management incentive mechanisms, top management team equity ownership enhances acquirer’s domestic productivity via cross- border M&A activities, whereas pay does not. It implies that stock rewards are more efficient than cash rewards in incentivizing managers to align their interests with the firm and thus a...