The central tenet of institutional theory is that markets cannot function without social institutions, such as the laws, social networks, cultural norms, and corporate practices that regulate transactions. Intercountry spaces are hampered by the absence of institutional frameworks governing economic transactions since these institutions are primarily founded and function inside national borders. This stands in stark contrast to pro-deregulatory arguments, which believe that market integrations can occur through the removal of existing restrictions as opposed to the enactment of new ones. My empirical research clearly demonstrates that adopting nations witness an increase in incoming cross-border mergers and acquisitions when antitrust laws and merger regulations are introduced. Antitrust laws encourage overseas acquisitions by notifying adopting nations that they support international standards for market-oriented reforms. By providing adopting firms with clarity on otherwise ambiguous legislation, merger control expedites foreign acquisitions.
