Carril Caccia, FedericoGarmendia-Lazcano, AitorMinondo, Asier2024-11-142024-11-142023-08Carril-Caccia, F., Garmendia-Lazcano, A., & Minondo, A. (2023). Social ties and home bias in mergers and acquisitions. Review of World Economics, 159(3), 563-593. https://doi.org/10.1007/S10290-022-00475-01610-287810.1007/S10290-022-00475-0http://hdl.handle.net/20.500.14454/1875This paper explores whether social ties, proxied by Facebook friendship links, can explain why the number and value of mergers and acquisitions (M&As) are greater within countries than between countries. We find that social ties are positively correlated with the number and value of M&As. We also demonstrate that the home bias in M&As is greatly reduced once we control for the differences in social ties between and within countries. We further find that social ties particularly facilitate M&As when the level of corruption is high, press freedom is limited in the target country, and there are more cultural differences between the acquirer and target countries.eng© The Author(s) 2022Border effectEuropean Union (EU)FacebookForeign Direct Investment (FDI)Mergers and Acquisitions (M&As)Social tiesjournal article2024-11-141610-2886