Tag Archives | capital flows

Investor Protections & the Allocation of Capital Flows

Weak IP (investor protections) in target countries impedes cross-border M&A markets from functioning fully. In particular, weak IP in target countries prevents poorly performing local firms from gaining access to foreign investors. These firms tend to have greater room for improvement, which can be facilitated by foreign capital and managerial know-how. Thus, the negative impact […]

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