Research Output
Home country macroeconomic factors on outward cross-border mergers and acquisitions: Evidence from the UK
  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.

  • Type:

    Article

  • Date:

    19 August 2013

  • Publication Status:

    Published

  • Publisher

    Elsevier BV

  • DOI:

    10.1016/j.ribaf.2013.08.001

  • Cross Ref:

    10.1016/j.ribaf.2013.08.001

  • ISSN:

    0275-5319

  • Funders:

    The University of Nottingham

Citation

Boateng, A., Hua, X., Uddin, M., & Du, M. (2014). Home country macroeconomic factors on outward cross-border mergers and acquisitions: Evidence from the UK. Research in International Business and Finance, 30, 202-216. https://doi.org/10.1016/j.ribaf.2013.08.001

Authors

Keywords

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

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