Terrorism and cross-border mergers and acquisitions

Authors

• Edward R. Lawrence, Florida International University
• Mehul Raithatha, Indian Institute of Management Ahmedabad, India
• Iván M. Rodríguez, Eastern Michigan University

Document Type

Article

Publication Date

2025

Department/School

Accounting and Finance

Publication Title

Global Finance Journal

Abstract

We analyze the impact of terrorism on cross-border mergers and acquisitions (M&As) and find that terrorist attacks in acquirer and target countries significantly influence both the initiation and completion of M&As. While the presence of terrorism deters deal initiation, it paradoxically increases the likelihood of deal completion, suggesting a complex interplay of risk assessment and strategic decision-making. Furthermore, we find that firms accelerate completion after terrorist attacks.

Comments

I. M. Rodríguez is a faculty member in EMU's Department of Accounting, Finance, and Information Systems.

Link to Published Version

DOI: 10.1016/j.gfj.2025.101146

Recommended Citation

Lawrence, E. R., Raithatha, M., & Rodríguez, I. M. (2025). Terrorism and cross-border mergers and acquisitions. Global Finance Journal, 67, 101146. https://doi.org/10.1016/j.gfj.2025.101146