Social ties and home bias in mergers and acquisitions Carril Caccia, Federico Garmendia Lazcano, Aitor Minondo, Asier Fusiones y adquisiciones Modelo de gravedad Relaciones sociales Facebook Efecto frontera M&As Gravity model Border effect This 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. 2022-09-06T08:30:28Z 2022-09-06T08:30:28Z 2022-08-02 journal article Carril-Caccia, F., Garmendia-Lazcano, A. & Minondo, A. Social ties and home bias in mergers and acquisitions. Rev World Econ (2022). https://doi.org/10.1007/s10290-022-00475-0 http://hdl.handle.net/10481/76541 https://doi.org/10.1007/s10290-022-00475-0 eng http://creativecommons.org/licenses/by-nd/4.0/ open access Attribution-NoDerivatives 4.0 Internacional