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: Journal PublicationArticlepeer-review

21 Citations (Scopus)

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 and A activities.

Original languageEnglish
Pages (from-to)202-216
Number of pages15
JournalResearch in International Business and Finance
Volume30
Issue number1
DOIs
Publication statusPublished - Jan 2014

Keywords

  • Cross-border, Mergers and acquisitions, Macroeconomic factors, VAR/VECM, UK

ASJC Scopus subject areas

  • Business, Management and Accounting (miscellaneous)
  • Finance

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