What Impact Do Currency Exchange Rates Have on the M&A Market in BRICS Countries?

Kristina Bondareva
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Kristina Bondareva: Department of corporate finance and corporate governance, Finance University under the Government of the Russian Federation

Review of Business and Economics Studies, 2017, issue 1, 70-78

Abstract: This paper tries to examine how currency exchange rates are influencing the M&A market in BRICS countries. Therefore the amount of M&A deals is defined as the dependent variable. Next to the currency exchange rate further variables like GDP growth rate, Stock (size of stockmarket) and money and quasi money growth are included this model. This data was gathered by the World Bank and modifyed for the right purpose. We used yearly data from 1994–2014 by 4 different countries. But in consequence of the fact that not all the data is availiable sinc e 1994 we were able to obtain 64 observations. By using panel data with fix effects and lags this paper tries t o display the impact of currency exchange rates on the M&A market through 4 cross-sectional units in a time period of 14 years (without timelags). After estimating the model we came to the conclusion that currency exchanges have a negative effect which is mostly sicnificant in the second period.

Keywords: M&A; BRICS countries; exchange rates; panel data model; fixed effect estimator; lags (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:scn:031730:17011631

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