This study investigates the effect of the mandatory implementation of IAS/IFRS on
cross-border M&A activity. I test the hypothesis that the improvement in the
comparability of financial statements among the adopting countries facilitates crossborder
transactions. According to the expectations, I find support for enhanced crossborder
M&As following the mandatory adoption of IFRS due to a likely increase in the
comparability of financial reports. Additionally, listed targets from IFRS adopting
countries do experience stronger positive influence on foreign M&A transactions than
unlisted target from adopting countries and listed targets from IFRS non-adopting
countries