Exploring Finance-Driven Factors Influencing M&A Type of Foreign Direct Investment A Firm-Level Investigation of the Thai Business Landscape
Issued Date
2023-12-01
Resource Type
ISSN
23395095
eISSN
23395206
Scopus ID
2-s2.0-85182883156
Journal Title
Journal of Southeast Asian Economies
Volume
40
Issue
3
Start Page
387
End Page
400
Rights Holder(s)
SCOPUS
Bibliographic Citation
Journal of Southeast Asian Economies Vol.40 No.3 (2023) , 387-400
Suggested Citation
Sakunasingha B., Ishido H., Liang L. Exploring Finance-Driven Factors Influencing M&A Type of Foreign Direct Investment A Firm-Level Investigation of the Thai Business Landscape. Journal of Southeast Asian Economies Vol.40 No.3 (2023) , 387-400. 400. Retrieved from: https://repository.li.mahidol.ac.th/handle/20.500.14594/95815
Title
Exploring Finance-Driven Factors Influencing M&A Type of Foreign Direct Investment A Firm-Level Investigation of the Thai Business Landscape
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Author's Affiliation
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Abstract
This study explores the finance-specific factors that help domestic companies operating in Thailand receive foreign direct investment (FDI) related to mergers and acquisitions (M&A). The three main objectives of this paper are to: analyse whether the firms receiving FDI differ from those that do not; identify significant finance-specific determinants that make Thai companies more likely to receive foreign investment; and explore the heterogeneity (different responses to investment decisions) at the firm-level, and the impact of financial constraints. This research makes use of the operational and financial data of both listed and unlisted Thai companies over the 2012-20 period and finds that larger as well as younger firms draw more foreign attention and have a higher probability of receiving M&A type of FDI. Moreover, companies with substantial intangible assets attract more investments from abroad. These findings have practical implications for business policies related to the accumulation of intangible assets. Specifically, developing flexible formal/informal linkages with potential M&A partners is key to promoting M&A-type FDI.