Home country macroeconomic factors on outward cross-border mergers and acquisitions: evidence from the UK

Agyenim Boateng, Xiuping Hua, Moshfique Uddin, Min Du

    Research output: Contribution to journalArticle

    Abstract

    In this paper, we examine the dynamic effects of key macroeconomic factors on the UK crossborder mergers and acquisitions (CBM&A) outflows over the period 1987–2008. Using a seven variable vector autoregressive/vector error correction models (VAR/VECM), the study finds that a number of home country macroeconomic variables, including GDP, broad money supply, stock prices and real effective exchange rate exert a positive and significant influence in explaining the CBM&A outflows by the UK firms. However, inflation rates and interest rates tend to have a negative impact on the volume of CBM&A. The findings support the notion that home country macroeconomic factors can create advantages to improve the outward Cross-border M&A activities.
    Original languageEnglish
    Pages (from-to)202-216
    Number of pages15
    JournalResearch in International Business and Finance
    Volume30
    DOIs
    Publication statusPublished - Jan 2014

    Keywords

    • macroeconomics
    • international business
    • mergers and acquisitions
    • CBM&As

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