Friday, May 25, 2007

Globalization - does corporate nationality still matter?


The implications of cross-border M&As on corporate governance

In a merger, two companies come together and integrate their distribution lines, brands, work forces, management teams, strategies and cultures. In a cross-border merger, however, the merging companies must also integrate the legal system of their countries of origin.

Specifically, they must unify accounting rules, standards of protection for investors, legal status of assets in case of default and, more generally, the corporate governance provisions of the merged company.

See full Article.