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Does government stake influence cross-border deal completion? Evidence from Brazil

Cai, Yingdan; Van Veen, Kees; Gubbi, Sathyajit


Catherine Cai
Senior Lecturer in Strategy and International Management

Kees Van Veen

Sathyajit Gubbi


In the context of developing economies, government as an important stakeholder plays a proactive role in strategic investment decisions made by firms. In this paper we investigate whether the equity stake held by government in the acquiring and the target firm influence likelihood of deal completion. Our analysis of over 500 cross-border deals by Brazilian multinational firms suggests that government equity ownership has a material impact on deal completion. While government equity stake in the acquirer enhances likelihood of deal completion, government equity ownership in the target firm diminishes the possibility. Moreover, the effects of government equity ownership differ for public traded and private traded firms.


Cai, Y., van Veen, K., & Gubbi, S. (2014). Does government stake influence cross-border deal completion? Evidence from Brazil. Academy of Management Proceedings, 1(13556),

Journal Article Type Article
Conference Name Academy of Management Conference
Acceptance Date Apr 1, 2014
Publication Date Jan 31, 2014
Journal Academy of Management Proceedings
Print ISSN 0065-0668
Publisher Academy of Management
Peer Reviewed Peer Reviewed
Volume 1
Issue 13556
Keywords government ownership, cross-border M&As, deal completion, emerging market, firm, institutional voids
Public URL
Publisher URL
Additional Information Title of Conference or Conference Proceedings : AOM 2014 Annual Conference


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