2016-09-282016-09-282016-102016-09-28October 20http://hdl.handle.net/10388/7501It is observed that merger premiums vary across countries. In this paper we study the impact of country-level characteristics on cross-border merger and acquisition premiums. By using principal component analysis to combine several existing country-level indices, we provide empirical evidence that stronger measures of legal and regulatory standards, investor protection, and corporate transparency lead to higher merger premiums in cross-border transactions. The results indicate that managers of the acquiring firm are willing to pay a higher premium to acquire a foreign target when they believe the risks of achieving merger synergies are lower, and that the market for corporate control is not an effective substitute for a formal legal and regulatory system that protects shareholders.application/pdfCross-border M&ACountry-level CharacteristicsPremiumsCorporate ValuationCorporate GovernanceThesis2016-09-28