The role of cross-border mergers and acquisitions in Asian restructuring

Cross-border M&A activity has been on the rise worldwide, driving the upsurge in foreign direct investment (FDI) over the past decade, and especially over the past few years. While industrialized countries account for a dominating 90 percent share of the value of world cross-border M&As, Latin America and East Asia developing countries have, is significant and the value of crossborder M&As in these countries is on the rise. The benefits of such M&A activity remain controversial. By enhancing the competition for corporate control, mergers can improve efficiency. Some studies show that acquisitions can be especially useful in restructuring underperforming firms.