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Unveiling Influence Of Home Macroeconomic Factors On Indian Outbound M&A

Author

Listed:
  • SHEEBA KAPIL

    (HOD, Finance, Indian Institute of Foreign Trade, Ministry of Commerce, Delhi, India)

  • KAUR DHINGRA

    (Indian Institute of Foreign Trade, Ministry of Commerce, Delhi, India)

Abstract

Indian enterprises have succeeded in climbing the ladder of outward M&A transactions and out-performing everyone’s expectations post 1990s. This paper aims to recalibrate the empirical literature of India’s outbound M&A by considering the impact of home country macroeconomics variables from 1990 to 2019. Bivariate regression and quantile regression approach is used to examine the impact of selected macroeconomic factors on outward M&A deal volume. The study found that the selected macroeconomic variables gross domestic product, population, exports, imports, interest rates, international reserves, human capital, trade openness, patents, exchange rate and per capita GDP influences the deal volume especially at high percentiles. The home country companies prefer to invest overseas specially when macroeconomic indicators change at high level. The empirical analysis of this paper provides policy makers a better understanding of determinants of outbound M&A transactions by Indian firms, to formulate push policies to encourage the same.

Suggested Citation

  • Sheeba Kapil & Kaur Dhingra, 2022. "Unveiling Influence Of Home Macroeconomic Factors On Indian Outbound M&A," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 29, pages 9-28, June.
    • Handle: RePEc:aic:revebs:y:2022:j:29:kapila
    DOI: 10.47743/rebs-2022-1-0001
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    References listed on IDEAS

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    More about this item

    Keywords

    Outbound M&A; India; OFDI; Determinants; Home Country;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • P45 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - International Linkages

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