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Flagging Determinants for Indian Outbound M&A

Author

Listed:
  • Sheeba Kapil

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

  • Puneet Kaur Dhingra

    (Research Scholar, 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 host market size, appreciation in home currency, India s trade openness and liberalization policies. This study attempts to examine the impact of the host market size, home international reserves and trade openness along with home currency appreciation on the volume of the outbound M&A by Indian firms, using augmented autoregressive distributed lag (augmented ARDL) bounds testing approach. Findings reveal that appreciation of Indian rupee and liberal norms towards trade, i.e. import and export both will inevitably benefit or push the Indian firms to acquire foreign firms overseas, in the short term as well as over the long term. This paper makes an effort to identify and describe the significant factors influencing the outbound M&A deals by Indian firms in the recent years, which were previously proved relevant for group of emerging economies at large.

Suggested Citation

  • Sheeba Kapil & Puneet Kaur Dhingra, 2021. "Flagging Determinants for Indian Outbound M&A," International Journal of Economics and Financial Issues, Econjournals, vol. 11(5), pages 1-10.
    • Handle: RePEc:eco:journ1:2021-05-1
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    References listed on IDEAS

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    More about this item

    Keywords

    Outbound M&A; India; OFDI; Determinants;
    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
    • P45 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - International Linkages
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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