UNVEILING INFLUENCE OF HOME MACROECONOMIC FACTORS ON INDIAN OUTBOUND M&A

Sheeba Kapil () and Kaur Dhingra ()
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Sheeba Kapil: HOD, Finance, Indian Institute of Foreign Trade, Ministry of Commerce, Delhi, India
Kaur Dhingra: Indian Institute of Foreign Trade, Ministry of Commerce, Delhi, India

Review of Economic and Business Studies, 2022, issue 29, 9-28

Abstract: Indian enterprises have succeeded in climbing the ladder of outward M&A transactions and out-performing everyone’s expectations post 1990s. This paper aims to recalibrate the empirical literature of India’s outbound M&A by considering the impact of home country macroeconomics variables from 1990 to 2019. Bivariate regression and quantile regression approach is used to examine the impact of selected macroeconomic factors on outward M&A deal volume. The study found that the selected macroeconomic variables gross domestic product, population, exports, imports, interest rates, international reserves, human capital, trade openness, patents, exchange rate and per capita GDP influences the deal volume especially at high percentiles. The home country companies prefer to invest overseas specially when macroeconomic indicators change at high level. The empirical analysis of this paper provides policy makers a better understanding of determinants of outbound M&A transactions by Indian firms, to formulate push policies to encourage the same.

Keywords: Outbound M&A; India, OFDI, Determinants, Home Country (search for similar items in EconPapers)
JEL-codes: F21 F23 G34 P45 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:aic:revebs:y:2022:j:29:kapila

DOI: 10.47743/rebs-2022-1-0001

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