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

Boateng, Agyenim; Hua, Xiuping; Uddin, Moshfique; Du, Min

Authors

Agyenim Boateng

Xiuping Hua

Moshfique Uddin



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.

Journal Article Type Article
Acceptance Date Aug 5, 2013
Online Publication Date Aug 19, 2013
Publication Date 2014-01
Deposit Date Dec 10, 2021
Journal Research in International Business and Finance
Print ISSN 0275-5319
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 30
Pages 202-216
DOI https://doi.org/10.1016/j.ribaf.2013.08.001
Keywords Cross-border, Mergers and acquisitions, Macroeconomic factors, VAR/VECM, UK
Public URL http://researchrepository.napier.ac.uk/Output/2828623