Mergers and acquisitions and greenfield foreign direct investment in selected ASEAN countries
Multinational enterprises undertake Foreign Direct Investments mainly through two different modes: Mergers and Acquisitions and greenfield investments. In the sizable empirical literature that examines the determinants of Foreign Direct Investments, very few studies investigated the determinants of...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Center for International Economics/Sejong University
2019
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| Online Access: | http://psasir.upm.edu.my/id/eprint/81335/ http://psasir.upm.edu.my/id/eprint/81335/1/Mergers%20and%20acquisitions%20and%20greenfield%20.pdf |
| _version_ | 1848859078997049344 |
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| author | Moghadam, Alireza Tavakol Mazlan, Nur Syazwani Chin, Lee Ibrahim, Saifuzzaman |
| author_facet | Moghadam, Alireza Tavakol Mazlan, Nur Syazwani Chin, Lee Ibrahim, Saifuzzaman |
| author_sort | Moghadam, Alireza Tavakol |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | Multinational enterprises undertake Foreign Direct Investments mainly through two different modes: Mergers and Acquisitions and greenfield investments. In the sizable empirical literature that examines the determinants of Foreign Direct Investments, very few studies investigated the determinants of these modes. This article empirically analyzes the extent to which determinants such as market size, exchange rate, and market openness in six selected ASEAN countries (ASEAN-6) influence the choice of one entry mode of Foreign Direct Investments over the other. A robust relationship between market size and exchange rate with greenfield inflows rather than Mergers and Acquisitions sales is found. Additionally, given an increase in market openness, foreign firms prefer Mergers and Acquisitions to greenfield investments. The results also confirm the fire-sale Foreign Direct Investments phenomenon during financial crises. |
| first_indexed | 2025-11-15T12:23:38Z |
| format | Article |
| id | upm-81335 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T12:23:38Z |
| publishDate | 2019 |
| publisher | Center for International Economics/Sejong University |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-813352021-11-09T09:11:12Z http://psasir.upm.edu.my/id/eprint/81335/ Mergers and acquisitions and greenfield foreign direct investment in selected ASEAN countries Moghadam, Alireza Tavakol Mazlan, Nur Syazwani Chin, Lee Ibrahim, Saifuzzaman Multinational enterprises undertake Foreign Direct Investments mainly through two different modes: Mergers and Acquisitions and greenfield investments. In the sizable empirical literature that examines the determinants of Foreign Direct Investments, very few studies investigated the determinants of these modes. This article empirically analyzes the extent to which determinants such as market size, exchange rate, and market openness in six selected ASEAN countries (ASEAN-6) influence the choice of one entry mode of Foreign Direct Investments over the other. A robust relationship between market size and exchange rate with greenfield inflows rather than Mergers and Acquisitions sales is found. Additionally, given an increase in market openness, foreign firms prefer Mergers and Acquisitions to greenfield investments. The results also confirm the fire-sale Foreign Direct Investments phenomenon during financial crises. Center for International Economics/Sejong University 2019-12 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/81335/1/Mergers%20and%20acquisitions%20and%20greenfield%20.pdf Moghadam, Alireza Tavakol and Mazlan, Nur Syazwani and Chin, Lee and Ibrahim, Saifuzzaman (2019) Mergers and acquisitions and greenfield foreign direct investment in selected ASEAN countries. Journal of Economic Integration, 34 (4). pp. 746-765. ISSN 1225-651X; ESSN: 1976-5525 https://www.e-jei.org/journal/view.php?number=2013600200 10.11130/jei.2019.34.4.746 |
| spellingShingle | Moghadam, Alireza Tavakol Mazlan, Nur Syazwani Chin, Lee Ibrahim, Saifuzzaman Mergers and acquisitions and greenfield foreign direct investment in selected ASEAN countries |
| title | Mergers and acquisitions and greenfield foreign direct investment in selected ASEAN countries |
| title_full | Mergers and acquisitions and greenfield foreign direct investment in selected ASEAN countries |
| title_fullStr | Mergers and acquisitions and greenfield foreign direct investment in selected ASEAN countries |
| title_full_unstemmed | Mergers and acquisitions and greenfield foreign direct investment in selected ASEAN countries |
| title_short | Mergers and acquisitions and greenfield foreign direct investment in selected ASEAN countries |
| title_sort | mergers and acquisitions and greenfield foreign direct investment in selected asean countries |
| url | http://psasir.upm.edu.my/id/eprint/81335/ http://psasir.upm.edu.my/id/eprint/81335/ http://psasir.upm.edu.my/id/eprint/81335/ http://psasir.upm.edu.my/id/eprint/81335/1/Mergers%20and%20acquisitions%20and%20greenfield%20.pdf |