Economic policy uncertainty and cross-border mergers and acquisitions

We examine the effects of economic policy uncertainty (EPU) on cross-border mergers and acquisitions (CBAs). The results show that a higher degree EPU at home retards number volume inbound CBA deals. However, this effect is positively moderated by host country’s better quality institution, business environment political risk. bilateral acquirer-target country-pair investigation reveals while in target’s domicile deters CBAs, acquirer’s nation associated with outbound Finally, announcement deals, targets (acquirers) based countries larger increase are lower (more) stock returns than smaller EPU. These findings imply aiming to attract investments should strive mitigate policy-related uncertainties.