Factors Affecting International Mergers and Acquisitions (original) (raw)
Related papers
2017
This study examines the effect of 5 macroeconomic factors on inward cross-border merger and acquisition in 11 developing countries within the periods from the year 2001 to 2015. This research examines the hypotheses by employing Unit Root Test, Descriptive Statistics, Panel Least Squares (OLS) and Correlation Test. The finding indicates that there is a negative relationship between three macroeconomic factors (inflation, exchange rate and interest rate) and the numbers of the inward cross-border mergers and acquisitions. There are positive relationship between another one macroeconomic factors (Gross Domestic Products) and the numbers of the inward cross-border mergers and acquisitions. This implies that high percentage of inflation, exchange rate and interest rate lead to lower the number of inward cross-border mergers and acquisitions. Moreover, low percentage of Gross Domestic Products leads to lower the number of inward cross-border mergers and acquisitions. Stock Price Index (S...
Determinants of Cross-Border Inbound and Outbound Mergers and Acquisitions
AJBMR (ABDC Journal), 2022
Mergers and Acquisitions being an inorganic activity is foremost choice of growth and expansion by the Corporates irrespective of a sector or country it belongs to. It is specifically interesting but at the same time involves lot of due diligence procedures by the firms for undergoing the mergers and acquisitions. Firms nowadays are involved in Domestic, Inbound and Outbound (Cross-Border) M & A due to various reasons which can be categorised into various determinants of Mergers and Acquisitions. Past Literature has described the determinants of M & A but the research is inadequate particularly for Inbound and Outbound Mergers and Acquisitions. The research has reserved Scopus as database for extracting the research papers on determinants of mergers and acquisitions for the years 1996 to 2021. The methodology includes certain tools which are used for searching the determinants of M & A comprising of Keyword Analysis, Citation Analysis, Network Analysis, Bibliometric Analysis and explaining the determinants exclusively by historical analysis. The study is discussing the emergent literature on determinants of Cross-Border Inbound and Outbound Mergers and Acquisitions. The key implications of the study precise that the determinants of inbound and outbound mergers and acquisitions are different for various sectors, country specific and also firm specific. The sector to which a firm belongs together with macro economic and firm specific determinants shape the decision of entering into mergers and acquisitions by a firm. Also, all the determinants are not postively impacting the decision of mergers and acquisitions.
JOURNAL OF INTERNATIONAL BUSINESS AND ECONOMY, 2021
Mergers and acquisitions (M&A) are a crucial phenomenon, which is ever growing since the 1990s. The area of M&A gained a momentum, which is visible by increase in number and value of M&A deals. There can be many reasons for which the firms are involved in this inorganic activity very actively. It is thought-inciting that seeking what can be major factors which are determining the M&A in an economy. Though the firms are entering into domestic, inbound and outbound deals aggressively, the literature for inbound and outbound mergers and acquisitions is not rationalized and sufficient. The study has taken Scopus as database to extract the research papers on determinants of M&A from 1996 to 2021. This study brings out the growing literature on determinants of inbound and outbound mergers and acquisitions. The findings are suggesting that the factors of cross border inbound and outbound M&A can be considered generalizable for the countries exceptionally there can be some factors like R&D ...
A REVIEW ARTICLE ON INTERNATIONAL MERGER & ACQUISITIONS
IAEME PUBLICATION, 2020
In Recent times, Mergers and Acquisitions have become a universal phenomenon. Companies had been actively involved in both Domestically & Internationally mergers and acquisitions. The increased global market rivalry has encouraged the companies to go global as a significant strategic choice for mergers and acquisitions. Mergers & Acquisitions are the strategic growth strategies in the hands of growing numbers of companies not only to remain in the competition but also to increase their margins, market share, and global domination. The scale of cross-border operations has seen an unparalleled Surge since the mid-1990s and the same pattern continues. The size and speed at which mergers are coming are remarkable. In the context, Mergers and acquisitions have become a strategic practice for a number of the world's leading businesses to expand rapidly.
Developments in Studies on Cross-Border Mergers and Acquisitions, 1996–2011
Lahore Journal of Business
This paper analyzes the methodological and publication trends in the literature on cross-border mergers and acquisitions over three five-year periods, 1996–2001, 2001–06, and 2006–11. Based on a selection of 23 journals and a sample of 170 articles, we use advanced cross-tabulations to study the publication and methodological trends that have emerged in North America, Europe, and other regions. Our main findings are as follows. A+-rated journals tend to accept the use of regression as a key technique. Top-tier journals accept papers primarily in finance and accounting and international business. Researchers’ interest in international business has increased at a rising rate, and increased at a falling rate in finance and accounting. The publication of conceptual quantitative articles has increased significantly by 45 percent over the 15-year period. About 98 percent of the total sample uses modeling as a methodology and is accepted by A+- and A-rated journals. Cross-sectional studies...
Journal of International Financial Management & Accounting, 2011
Most of the growth in international production over the past decade has been carried out via cross-border mergers and acquisitions. Yet previous empirical work relating to CBM&As has been confined to firm-specific factors. This is against the backdrop that researchers have not been able to develop a coherent theory explaining the increasing trends of CBM&As activity. Building on prior studies, this study attempts to extend the few existing studies by using a simple empirical nonlinear framework to analyse the number of cross-border mergers and acquisitions inflows between 1987 and 2008 into the UK from a macroeconomic perspective. The main findings are that the response of the inflow is asymmetric as there is more persistence during stock market booms versus recessions. There are asymmetries with respect to relative prices suggesting that an improvement in the terms of trade leads to higher inflows once the growth of stock prices is above a threshold level of 8%. Other factors which have significant bearing on CBM&As inflows are the rate of inflation and growth in real GDP.
LATEST TRENDS IN MERGERS AND ACQUISITIONS RESEARCH. THE NEW PATTERN OF GLOBALIZATION
The corporate sector all over the world is restructuring its operations through different types of consolidation strategies like mergers and acquisitions in order to face challenges posed by the new pattern of globalization. Cross-border mergers and acquisitions (M&As) sharply increased over the last two decades and this is partly the result of financial liberalization policies, government policies and regional agreements. This study aims to highlight the leading questions in M&A research and tries to find ways to overcome the inconsistencies of the research findings. Our study proposes an analysis of the most important reasons for the M&A activity and the main processes during this kind of activity. We focus also, on performance and success factors of mergers and acquisitions. In this article, we aim to answer the questions “Why companies perform M&A?”, “What is actually M&A performance?” and “How to achieve success in M&A?”. We intend to contribute to the M&A literature by revealing the current understanding of the M&A fundamental issues. We aim to discuss also the relevance of current M&A performance research.
Cross-country determinants of mergers and acquisitions
Journal of Financial Economics, 2004
We study the determinants of mergers and acquisitions around the world by focusing on differences in laws and regulation across countries. We find that the volume of M&A activity is significantly larger in countries with better accounting standards and stronger shareholder protection. The probability of an all-cash bid decreases with the level of shareholder protection in the acquirer country. In cross-border deals, targets are typically from countries with poorer investor protection than their acquirers' countries, suggesting that cross-border transactions play a governance role by improving the degree of investor protection within target firms. r 2004 Elsevier B.V. All rights reserved. JEL classification: G28; G32; G34