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Firm-Level Variables Affect Cross-Border Mergers and Acquisitions from BRICS Countries: Binary Logistic Regression Analysis

Author

Listed:
  • Manoj Kumar Sinha

    (Manoj Kumar Sinha is a Professor at PGDAV College, University of Delhi, New Delhi, India. E-mail: mksinha@pgdav.du.ac.in)

  • Shalini Rawal

    (Shalini Rawal (corresponding author) is an Assistant Professor at Ram Lal Anand College, University of Delhi, New Delhi, India. E-mail: Shalini.commerce@rla.du.ac.in)

Abstract

This research explores the firm-level drivers of cross-border Mergers and Acquisitions (M&A) within the BRICS nations, focusing on characteristics such as size, profitability, leverage and operational efficiency. Using a unique dataset of 157 firms from 2004 to 2023 and employing binary logistic regression analysis, the study finds that market capitalisation and return on assets significantly increase the likelihood of M&A activity, while higher tax rates act as a deterrent. Leverage also shows a positive association, indicating that firms strategically use debt to finance international expansion. By highlighting the critical role of financial health and tax efficiency in shaping Outward Foreign Direct Investment (OFDI), the study provides actionable insights for corporate leaders and policymakers. Unlike prior research that primarily examined macroeconomic or country-level factors, this paper advances understanding on cross-border M&A by focusing on the firm-specific determinants of M&A in emerging economies. JEL Codes: G34, G32, F21, O16

Suggested Citation

  • Manoj Kumar Sinha & Shalini Rawal, 2026. "Firm-Level Variables Affect Cross-Border Mergers and Acquisitions from BRICS Countries: Binary Logistic Regression Analysis," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 20(1), pages 123-137, May.
    • Handle: RePEc:sae:mareco:v:20:y:2026:i:1:p:123-137
    DOI: 10.1177/00252921261440651
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    Keywords

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    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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