Home country macroeconomic factors on outward cross-border mergers and acquisitions: Evidence from the UK

Agyenim Boateng, Xiuping Hua, Moshfique Uddin and Min Du

Research in International Business and Finance, 2014, vol. 30, issue C, 202-216

Abstract: In this paper, we examine the dynamic effects of key macroeconomic factors on the UK crossborder mergers and acquisitions (CBM&A) outflows over the period 1987–2008. Using a seven variable vector autoregressive/vector error correction models (VAR/VECM), the study finds that a number of home country macroeconomic variables, including GDP, broad money supply, stock prices and real effective exchange rate exert a positive and significant influence in explaining the CBM&A outflows by the UK firms. However, inflation rates and interest rates tend to have a negative impact on the volume of CBM&A. The findings support the notion that home country macroeconomic factors can create advantages to improve the outward Cross-border M&A activities.

Keywords: Cross-border, Mergers and acquisitions, Macroeconomic factors, VAR/VECM, UK (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:30:y:2014:i:c:p:202-216

DOI: 10.1016/j.ribaf.2013.08.001

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