Determinants of the acquisition of listed versus unlisted firms in different legal and institutional environments

Abstract

The aim of this paper is to analyse the determinants of the decision to acquire unlisted rather than listed firms in different legal and institutional environments. Our results show that managerial opportunism is a determinant in the acquisition of listed firms, occurring with greater probability in acquiring countries with limited shareholder and minority shareholder protection. Information asymmetry is another relevant determinant that promotes the acquisitions of unlisted firms. Furthermore, the less developed the capital market in the country of the acquired firm, the greater the probability of acquisitions of unlisted firms.