Research page

Coordinators: Prof. Rahul Mukherjee (CFD) with Christian Proebsting (EPFL)

The aim of this research project is to get at a precise quantification of the welfare effects of globalization by analyzing the interaction of two key elements – technology and financing – in the market for domestic and cross-border mergers and acquisitions (M&As). The M&A market is especially suitable in this regard: Both foreign and domestic firms compete for ownership of other firms in this market, leading to massive reallocation of real, technological and financial factors of production across and within the boundaries of firms and countries. In particular, this project seeks to combine rigorous theoretical models with rich new firm-level data to explore the dynamics of this reallocation, and hence understand the sources of welfare gains – real and technological versus financial – from globalization.

Research Assistant: Alexandre Lauwers

Keywords: capital reallocation; financial globalization; mergers and acquisitions; foreign direct investment

Funding: SNSF project grant No. 172690 for the project entitled "Financial Globalization and Real Reallocation in the Market for Corporate Control"

Granted amount: 256'902.00

 

Peer-reviewed Articles

 

Taxes and International Risk Sharing
Brendan Epstein, Rahul Mukherjee & Shanthi Ramnath, Journal of International Economics, Vol. 102, pp. 310–326, 2016

Fire-Sale FDI or Business as Usual?
Ron Alquist, Rahul Mukherjee & Linda Tesar, Journal of International Economics, Vol. 98, pp. 93–113, 2016

Institutions, Corporate Governance and Capital Flows
Rahul Mukherjee, Journal of International Economics, Vol. 96 (2), pp. 338–359, 2015

 

Working paper

 

Liquidity-Driven FDI
Ron Alquist, Rahul Mukherjee & Linda Tesar, University of Michigan RSIE Discussion Paper No. 626, 2015

Survival of the Fittest: Corporate Control and the Cleansing Effect of Financial Crises
Rahul Mukherjee & Christian Pröbsting, IHEID WP No. 20-2015, 2015

 

Media coverage

 

Liquidity-driven Foreign Direct Investment
Ron Alquist, Rahul Mukherjee & Linda Tesar, Vox column, 22 December 2014

Fire-sale FDI: All Smoke and No Fire?
Ron Alquist, Rahul Mukherjee & Linda Tesar, Vox column, 26 March 2013