We examine the effects of economic policy uncertainty (EPU) on cross-border mergers and acquisitions (CBAs). The results show that a higher degree of EPU at home retards the number and volume of inbound CBA deals. However, this effect is positively moderated by the host country’s better quality of institution, business environment and political risk. The bilateral acquirer-target country-pair investigation reveals that while higher EPU in the target’s domicile deters inbound CBAs, higher EPU in the acquirer’s nation is positively associated with a higher number and volume of outbound CBA deals. Finally, on the announcement of the deals, targets (acquirers) based in countries with a larger increase in EPU are associated with lower (more) stock returns than the targets (acquirers) based in countries with a smaller increase in EPU. These findings imply that countries aiming to attract cross-border investments should strive to mitigate economic policy-related uncertainties.

我们研究了经济政策不确定性 (EPU) 对跨境并购 (CBA) 的影响。结果表明，国内较高程度的 EPU 会延迟入境 CBA 交易的数量和数量。然而，东道国更好的制度质量、商业环境和政治风险积极缓和了这种影响。双边收购方-目标国家/地区对调查显示，虽然目标公司所在地较高的 EPU 会阻止入境 CBA，但收购方所在国家/地区较高的 EPU 与较高的出境 CBA 交易数量和数量呈正相关。最后，在宣布交易时，位于 EPU 增幅较大国家的目标（收购方）与位于 EPU 增幅较小国家的目标（收购方）相比，其股票回报较低（更多）。