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 and A activities.
|Number of pages||15|
|Journal||Research in International Business and Finance|
|Publication status||Published - Jan 2014|
- Cross-border, Mergers and acquisitions, Macroeconomic factors, VAR/VECM, UK
ASJC Scopus subject areas
- Business, Management and Accounting (miscellaneous)