Does human flight and brain drain affect cross-border acquisitions? Insights into tobit and binomial regression models

IF 6.3 2区经济学 Q1 BUSINESS, FINANCE

Research in International Business and Finance Pub Date : 2025-02-13 DOI:10.1016/j.ribaf.2025.102805

Chandrika Raghavendra , Miklesh Prasad Yadav , Taimur Sharif , Mohammad Zoynul Abedin

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引用次数: 0

Abstract

India has witnessed dramatic expansion in cross-border acquisition (CBA) activities. Although extant literature has examined various determinants of the flow of CBA activities to emerging economies, the role of human flight and brain drain (HFBD) has remained underexplored. Moreover, India’s HFBD index, indicating the economic consequence of brain drain, has been decreasing in the past three decades while its inbound CBA activities are escalating. Against this background, drawing on institutional and ethnic network theories, we develop a hypothesis to understand the influence of HFBD on CBA volume. We also examine the moderating effect of economic distance (ED) through which HFBD impacts India’s share of CBA. We use a sample of 804 country–year observations covering 57 home countries that acquired Indian target firms in the 1990–2020 period. Our findings show that India’s HFBD is inversely correlated with its CBA volume, indicating that the reduced economic consequences of HFBD boost India’s attraction of CBA volume. Additionally, ED significantly moderates the impact of HFBD on CBA volume. The findings of this research offer key insights for policymakers and multinational enterprises regarding brain drain and CBAs.

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来源期刊

Research in International Business and Finance BUSINESS, FINANCE-

CiteScore

11.20

自引率

9.20%

发文量

240

期刊介绍： Research in International Business and Finance (RIBAF) seeks to consolidate its position as a premier scholarly vehicle of academic finance. The Journal publishes high quality, insightful, well-written papers that explore current and new issues in international finance. Papers that foster dialogue, innovation, and intellectual risk-taking in financial studies; as well as shed light on the interaction between finance and broader societal concerns are particularly appreciated. The Journal welcomes submissions that seek to expand the boundaries of academic finance and otherwise challenge the discipline. Papers studying finance using a variety of methodologies; as well as interdisciplinary studies will be considered for publication. Papers that examine topical issues using extensive international data sets are welcome. Single-country studies can also be considered for publication provided that they develop novel methodological and theoretical approaches or fall within the Journal''s priority themes. It is especially important that single-country studies communicate to the reader why the particular chosen country is especially relevant to the issue being investigated. [...] The scope of topics that are most interesting to RIBAF readers include the following: -Financial markets and institutions -Financial practices and sustainability -The impact of national culture on finance -The impact of formal and informal institutions on finance -Privatizations, public financing, and nonprofit issues in finance -Interdisciplinary financial studies -Finance and international development -International financial crises and regulation -Financialization studies -International financial integration and architecture -Behavioral aspects in finance -Consumer finance -Methodologies and conceptualization issues related to finance