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Explaining the trends in the UK cross-border mergers & acquisitions: An analysis of macro-economic factors

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  • Uddin, Moshfique
  • Boateng, Agyenim
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    Abstract

    Most of the growth in international production over the past decades has been via cross-border mergers and acquisitions (CBM&As). Yet prior studies examining the trajectory of cross-border M&A activities as an entry mode of FDI have focused on industry and firm level factors. Dunning (2009) emphasised the importance of macroeconomic variables which may explain foreign direct investment and called for more research to improve our understanding on the effects of macroeconomic variables. Building on prior studies, this study attempts to investigate the role of macroeconomic influences on CBM&As activities in the UK over the 1987-2006 period. This study finds that GDP, exchange rate, interest rate and share prices have significant impact on the level of outward UK CBM&As. On the other hand, GDP, money supply and share price have statistically significant impact on the UK CBM&As inflows.

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    Bibliographic Info

    Article provided by Elsevier in its journal International Business Review.

    Volume (Year): 20 (2011)
    Issue (Month): 5 (October)
    Pages: 547-556

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    Handle: RePEc:eee:iburev:v:20:y:2011:i:5:p:547-556

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    Keywords: Cross-border mergers & acquisition Location advantage Macro-economic factors UK;

    References

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    Cited by:
    1. Boateng, Agyenim & Hua, Xiuping & Uddin, Moshfique & Du, Min, 2014. "Home country macroeconomic factors on outward cross-border mergers and acquisitions: Evidence from the UK," Research in International Business and Finance, Elsevier, vol. 30(C), pages 202-216.

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