Worldwide Board Reforms and Cross-border M&A Flows

Qi Dong; Gianluca Marcato; Chen Zheng

doi:10.1016/j.jcorpfin.2026.102970

Worldwide Board Reforms and Cross-border M&A Flows

Qi Dong, Gianluca Marcato, Chen Zheng

University of Reading

Research output: Contribution to journal › Article › peer-review

Abstract

This study examines the influence of global board reforms on cross-border mergers and acquisitions (CBMAs). Using a difference-in-differences methodology, we find that CBMA flows increase significantly following board reforms in both home and host countries. The effect is more pronounced for countries with relatively weaker external governance mechanisms compared to their counterparts. Our findings suggest that board reforms enhance board functions, thereby facilitating firms’ outbound investments. Simultaneously, improved board governance mitigates acquisition risks, attracting inward investments and, consequently, stimulating CBMA flows.

Original language	English
Article number	102970
Journal	Journal of Corporate Finance
Volume	98
Early online date	26 Jan 2026
DOIs	https://doi.org/10.1016/j.jcorpfin.2026.102970
Publication status	E-pub ahead of print - 26 Jan 2026

Data Availability Statement

The data that has been used is confidential.

Funding

We thank the following colleagues for their thoughtful suggestions and comments: Heitor Almeida (editor), the anonymous reviewer, Xiangshang Cai, Weixi Liu, Merve Demirbas Ozbekler, Chao Yin, and workshop participants at 2022 Cross-Country Perspectives in Finance Conference, 2022 Essex Finance Centre Conference in Banking and Corporate Finance, and 2022 Financial Markets and Corporate Governance Conference.

Funders	Funder number
2022 Financial Markets and Corporate Governance Conference

Keywords

Board governance
Board reforms
Cross-border M&As
International flows

ASJC Scopus subject areas

Business and International Management
Finance
Economics and Econometrics
Strategy and Management

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10.1016/j.jcorpfin.2026.102970Licence: CC BY-NC-ND

Cite this

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abstract = "This study examines the influence of global board reforms on cross-border mergers and acquisitions (CBMAs). Using a difference-in-differences methodology, we find that CBMA flows increase significantly following board reforms in both home and host countries. The effect is more pronounced for countries with relatively weaker external governance mechanisms compared to their counterparts. Our findings suggest that board reforms enhance board functions, thereby facilitating firms{\textquoteright} outbound investments. Simultaneously, improved board governance mitigates acquisition risks, attracting inward investments and, consequently, stimulating CBMA flows.",

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AB - This study examines the influence of global board reforms on cross-border mergers and acquisitions (CBMAs). Using a difference-in-differences methodology, we find that CBMA flows increase significantly following board reforms in both home and host countries. The effect is more pronounced for countries with relatively weaker external governance mechanisms compared to their counterparts. Our findings suggest that board reforms enhance board functions, thereby facilitating firms’ outbound investments. Simultaneously, improved board governance mitigates acquisition risks, attracting inward investments and, consequently, stimulating CBMA flows.

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Worldwide Board Reforms and Cross-border M&A Flows

Abstract

Data Availability Statement

Funding

Keywords

ASJC Scopus subject areas

Access to Document

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