Institutional Distance and Free Trade Agreements in the Context of Cross-border M&A Performance

Carl-Arne Johan Skjølberg & Thomas Clausen

Student thesis: Master thesis


This paper contributes to the understanding of cross-border M&A performance, by employing a multilevel view of institutional distance. While prior research has focused mostly on select institutional distance variables such as cultural distance, we use a multi-faceted approach, employing both formal and informal institutional distance variables to the context of cross-border M&A performance. Furthermore, our paper introduces Free Trade Agreements as a new supra-national variable, adding nuance to the multi-level view of institutional distance. Specifically, we test whether formal and informal distance variables affect cross-border M&A performance and whether Free Trade Agreements are able to mitigate the effects of formal and informal institutional distance on cross-border M&A performance. Our findings indicate partial empirical support for the former and no empirical support for the latter.

EducationsMSc in Finance and Strategic Management, (Graduate Programme) Final Thesis
Publication date2018
Number of pages119
SupervisorsMarcus Møller Larsen