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The impact of the global financial crisis on cross-border mergers and acquisitions: a continental and industry analysis

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  • Narendar Rao

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  • K. Reddy

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Abstract

Drawing attention to the recent empirical study on the 2007–2008 global financial crisis, and cross-border mergers and acquisitions in 26 countries (Reddy et al. in Glob J Emerg Mark Econ 6:257–281, 2014 ), this paper aims to further examine the impact of the financial crisis on the later form of market in 13 sub-continentals, three sectors and 21 industries. Using Reddy et al. (Glob J Emerg Mark Econ 6:257–281, 2014 ) research design, we define and test the hypotheses, and improve the discussion on historical views of the financial crisis. We also analyze the market for inbound acquisitions in the world economy, developed markets, developing markets and BRIC group. We find that the rate of growth in number (value) of cross-border acquisitions has markedly declined reporting to continentals and industries during the crisis. We suggest that emerging market economies in Asia, Africa and Latin American regions are found to be exciting in attracting direct international investments from developed and other developing markets whilst focusing deeply on fiscal deregulation and policy amendments, particularly after the crisis. Copyright Eurasia Business and Economics Society 2015

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  • Narendar Rao & K. Reddy, 2015. "The impact of the global financial crisis on cross-border mergers and acquisitions: a continental and industry analysis," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 5(2), pages 309-341, December.
  • Handle: RePEc:spr:eurasi:v:5:y:2015:i:2:p:309-341
    DOI: 10.1007/s40821-015-0028-y
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    Cited by:

    1. Reddy, Kotapati Srinivasa, 2016. "Turnaround or Contract Merger: A conceptual model to protect sick and government companies," MPRA Paper 74263, University Library of Munich, Germany, revised 2016.
    2. K.S. Reddy & En Xie & Yuanyuan Huang, 2016. "Contractual buyout - a legitimate growth model in the enterprise development: foundations and implications," International Journal of Management and Enterprise Development, Inderscience Enterprises Ltd, vol. 15(1), pages 1-23.
    3. Narendar V., Rao & K.S., Reddy, 2017. "Guest Editorial: Institutional role, the Market for corporate control and Firm performance," MPRA Paper 80235, University Library of Munich, Germany.
    4. Reddy, Kotapati Srinivasa, 2016. "Corporate Restructuring in the Asian electronics market: Insights from Philips and Panasonic," MPRA Paper 73663, University Library of Munich, Germany, revised 2016.
    5. Gozgor, Giray & Lau, Chi Keung Marco & Bilgin, Mehmet Huseyin, 2016. "Commodity markets volatility transmission: Roles of risk perceptions and uncertainty in financial markets," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 44(C), pages 35-45.

    More about this item

    Keywords

    Global financial crisis; Mergers and acquisitions; Cross-border acquisitions; International investments and acquisitions; Foreign direct investment; World economy; G1; G14; G34; O4;

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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