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The impact of the global financial crisis on border-crossing mergers and acquisitions: A continental/industry analysis

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  • Reddy, Kotapati Srinivasa

Abstract

While referring to the recent study on the 2007-2008 global financial crisis, and cross-border mergers and acquisitions in 26 countries (Reddy, Nangia, & Agrawal, 2014b), this paper aims to further examine the impact of financial crisis on the later form of market in 13 sub-continentals, three sectors and 21 industries. Using their research design, we define and test the hypotheses whilst improve the discussion on historical views of the financial crisis and market for inbound acquisitions in the world economy, developed markets, developing markets and BRIC group. We find that rate of growth in number (value) of cross-border acquisitions has markedly declined reporting to continentals and industries around the crisis. We eventually suggest that emerging market economies in Asia, Africa and Latin American regions are found to be exciting in attracting direct international investments from both developed and other developing markets whilst focusing deeply on fiscal deregulation and policy amendments, particularly during post-crisis.

Suggested Citation

  • Reddy, Kotapati Srinivasa, 2015. "The impact of the global financial crisis on border-crossing mergers and acquisitions: A continental/industry analysis," MPRA Paper 63563, University Library of Munich, Germany, revised 2015.
  • Handle: RePEc:pra:mprapa:63563
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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.

    More about this item

    Keywords

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

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F3 - International Economics - - International Finance
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • F6 - International Economics - - Economic Impacts of Globalization
    • G1 - Financial Economics - - General Financial Markets
    • G3 - Financial Economics - - Corporate Finance and Governance
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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