Explaining the trends in the UK cross-border mergers & acquisitions: an analysis of macro-economic factors

Moshfique Uddin; Agyenim  Boateng

doi:10.1016/j.ibusrev.2010.11.003

Explaining the trends in the UK cross-border mergers & acquisitions: an analysis of macro-economic factors

Moshfique Uddin, Agyenim Boateng

The York Management School

Research output: Contribution to journal › Article › peer-review

Abstract

Most of the growth in international production over the past decades has been via cross-border mergers and acquisitions (CBM&As). Yet prior studies examining the trajectory of cross-border M&A activities as an entry mode of FDI have focused on industry and firm level factors. Dunning (2009) emphasised the importance of macroeconomic variables which may explain foreign direct investment and called for more research to improve our understanding on the effects of macroeconomic variables. Building on prior studies, this study attempts to investigate the role of macroeconomic influences on CBM&As activities in the UK over the 1987–2006 period. This study finds that GDP, exchange rate, interest rate and share prices have significant impact on the level of outward UK CBM&As. On the other hand, GDP, money supply and share price have statistically significant impact on the UK CBM&As inflows.

Original language	English
Pages (from-to)	547 - 556
Number of pages	10
Journal	International Business Review
Volume	20
Issue number	5
Early online date	14 Dec 2010
DOIs	https://doi.org/10.1016/j.ibusrev.2010.11.003
Publication status	Published - Oct 2011

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10.1016/j.ibusrev.2010.11.003

http://www.sciencedirect.com/science/article/pii/S0969593110001265

Cite this

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title = "Explaining the trends in the UK cross-border mergers & acquisitions: an analysis of macro-economic factors",

abstract = "Most of the growth in international production over the past decades has been via cross-border mergers and acquisitions (CBM&As). Yet prior studies examining the trajectory of cross-border M&A activities as an entry mode of FDI have focused on industry and firm level factors. Dunning (2009) emphasised the importance of macroeconomic variables which may explain foreign direct investment and called for more research to improve our understanding on the effects of macroeconomic variables. Building on prior studies, this study attempts to investigate the role of macroeconomic influences on CBM&As activities in the UK over the 1987–2006 period. This study finds that GDP, exchange rate, interest rate and share prices have significant impact on the level of outward UK CBM&As. On the other hand, GDP, money supply and share price have statistically significant impact on the UK CBM&As inflows.",

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