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Mergers & Acquisitions in the European Union. Acquisition Activity & Economic Performance

Author

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  • Iveta Mackenzie

    (Technical University of Liberec, Faculty of Economics)

Abstract

The paper is focused on the relationship between the level of acquisition activity and the external conditions in which transactions occur or further develop. It deals with the dependence between acquisition activity and economic performance, and, at the same time, with the dependence between acquisition activity and the tax rate. Acquisition activity is presented by the indicator 3M: the M-total, indicator of the total number of transactions, M-score, indicator of the transaction frequency, and M-index, showing the position within a given unit. The paper surveys acquisition activity in individual EU countries, confirms the dependence between acquisition activity levels and economic performance, and maintains that the tax rate is a significant factor contributing to the given country´s acquisition activity level.

Suggested Citation

  • Iveta Mackenzie, 2017. "Mergers & Acquisitions in the European Union. Acquisition Activity & Economic Performance," ACTA VSFS, University of Finance and Administration, vol. 11(2), pages 106-120.
    • Handle: RePEc:prf:journl:v:11:y:2017:i:2:p:106-120
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    File URL: https://www.vsfs.cz/periodika/acta-2017-2-01.pdf
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    References listed on IDEAS

    as
    1. Duchin, Ran & Schmidt, Breno, 2013. "Riding the merger wave: Uncertainty, reduced monitoring, and bad acquisitions," Journal of Financial Economics, Elsevier, vol. 107(1), pages 69-88.
    2. Martynova, Marina & Renneboog, Luc, 2008. "A century of corporate takeovers: What have we learned and where do we stand?," Journal of Banking & Finance, Elsevier, vol. 32(10), pages 2148-2177, October.
    3. Huang, Qianqian & Jiang, Feng & Lie, Erik & Yang, Ke, 2014. "The role of investment banker directors in M&A," Journal of Financial Economics, Elsevier, vol. 112(2), pages 269-286.
    4. Harford, Jarrad, 2005. "What drives merger waves?," Journal of Financial Economics, Elsevier, vol. 77(3), pages 529-560, September.
    5. Jeffry Netter & Mike Stegemoller & M. Babajide Wintoki, 2011. "Implications of Data Screens on Merger and Acquisition Analysis: A Large Sample Study of Mergers and Acquisitions from 1992 to 2009," The Review of Financial Studies, Society for Financial Studies, vol. 24(7), pages 2316-2357.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    acquisition activity; acquisition activity indicators; acquisition strategy; mergers & acquisitions; M-index; M-score; M-total;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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