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Economic policy uncertainty and cross-border mergers and acquisitions

Gregoriou, Andros; Nguyen, Binh Duy; Nguyen, Tung Duy; Le, Huong; Hudson, Robert


Andros Gregoriou

Binh Duy Nguyen

Tung Duy Nguyen

Huong Le

Robert Hudson


We examine the impact of policy uncertainty on cross-border mergers and acquisitions (M&As). Using a sample of 23 countries worldwide over the period from 2003 to 2016, we provide evidence that when a country has high policy uncertainty, the volume of inbound acquisition decreases whereas the total number of outbound deals increase significantly. Policy uncertainty also encourages acquirers to use stock as a method of payment and offer lower premium to targets. We also find that the percentage of full control cross-border M&A deals is negatively correlated to the level of policy uncertainty. Further evidence suggests that policy uncertainty complicates the takeover process by increasing the probability of withdrawn and pending deals as well as requiring longer time periods to complete deals.


Gregoriou, A., Nguyen, B. D., Nguyen, T. D., Le, H., & Hudson, R. (2021). Economic policy uncertainty and cross-border mergers and acquisitions. International review of financial analysis, 78,

Journal Article Type Article
Acceptance Date Sep 20, 2021
Online Publication Date Sep 24, 2021
Publication Date Nov 1, 2021
Deposit Date Sep 20, 2021
Publicly Available Date Mar 25, 2023
Journal International Review of Financial Analysis
Print ISSN 1057-5219
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 78
Article Number 101911
Keywords Cross-border mergers and acquisitions; Economic policy uncertainty
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