How Do the Foreign Direct Investments Flow? The Case of the Cross-Border M&As in The European Union
George Marian Aevoae (),
Roxana Dicu and
Additional contact information
Daniela Mardiros: “Alexandru Ioan Cuza” University of Iasi, Romania
Journal of Accounting and Management Information Systems, 2018, vol. 17, issue 4, 641-662
Mergers and acquisitions (M&As) have been a popular strategy for firms and represent an important alternative for strategic expansion. At European Union (EU) level there are companies which choose this strategic option in order to expand their activity overboard, by merging or acquiring a company from EU or from a country outside the Union. The purpose of this paper is to present a quantitative analysis, for the 2005-2016 period of time, of the cross-border mergers and acquisitions (CBM&As) in the EU, by considering the mergers and the acquisitions of a controlling interest (100%), taking into account only the companies that developed their activity in the EU. The paper will follow two directions. On a side, we will analyze the number and the volume of the CBM&As for the EU member states, which will be categorized as developed, advanced emerging, secondary emerging and frontier economies, according to FTSE Russell criteria. On the other side, we will discuss the volume of the inward and outward foreign direct investments (FDI) related to CBM&As for these countries, to confirm that the most of these funds are flowing between developed economies. The flows are correlated to the merger waves in the Europe, according to the data provided by the Institute of Mergers, Acquisitions and Alliances (IMAA) in 2018.
Keywords: cross-border mergers and acquisitions; developed, emerging and frontier economies; foreign direct investments; Lucas’ paradox (search for similar items in EconPapers)
JEL-codes: G34 M16 M21 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ami:journl:v:17:y:2018:i:4:p:641-662
Access Statistics for this article
More articles in Journal of Accounting and Management Information Systems from Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies
Bibliographic data for series maintained by Cristina Tartavulea ().