Macroeconomic Factors Affecting Merger and Acquisition (M&A) Activity in Vietnam

2021 ◽  
pp. 439-447
Author(s):  
Nguyen Quyet
Keyword(s):  
Merger And Acquisition ◽  
Macroeconomic Factors ◽  
Factors Affecting

Cross-border merger and acquisition activities in Asia: the role of macroeconomic factors

2018 ◽  
Vol 35 (2) ◽  
pp. 307-329 ◽  
Author(s):  
Yusnidah Ibrahim ◽  
Jimoh Olajide Raji
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Money Supply ◽  
Inflation Rate ◽  
Merger And Acquisition ◽  
The Philippines ◽  
Macroeconomic Factors ◽  
Content Type ◽  
Cross Border ◽  
Asean Countries

Purpose This paper aims to examine the influence of key macroeconomic factors on the inward and outward acquisition activities of six ASEAN (ASEAN: Association of Southeast Asian Nations) countries, namely, Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam, over the 1996-2015 period. Design/methodology/approach The study uses alternative panel data methods, including pooled mean group, mean group and dynamic fixed-effect estimators. Findings The results indicate that gross domestic product (GDP), interest rate, exchange rate, money supply and inflation rate are the most important macroeconomic factors explaining the trends of cross-border mergers and acquisition outflows of the ASEAN-6 countries. Specifically, GDP, money supply and inflation rate have significant positive relationships with acquisition outflows, while interest rate and exchange rate exert significant negative influence. On the other hand, the authors find four significant macroeconomic factors explaining the trends of the inward acquisitions. Essentially, GDP, money supply and inflation rate have significant positive impacts on inward acquisitions, while the impact of exchange rate is negatively significant. Research limitations/implications Unavailability of data limits this study to pool six sample countries from ASEAN, instead of ten representative member countries. Practical implications The results of this study can signal to firms or investors, involving in cross-border mergers and acquisitions, where to direct foreign resources flows. Moreover, having the knowledge about the relative levels of market size and other macroeconomic factors in both home and host countries can be of great importance for investment decision. Therefore, policymakers of ASEAN countries should make appropriate macroeconomic policies that can stimulate inward and outward acquisitions. Originality/value The main contribution of this paper is that it is the first to present the analysis of macroeconomic influences on the trends of inward and outward merger and acquisition activities in six ASEAN countries.

scholarly journals THE IMPACT OF MACROECONOMIC INDICATORS UPON SME’S PROFITABILITY

Ekonomika ◽  
2012 ◽  
Vol 91 (3) ◽  
pp. 117-128 ◽  
Author(s):  
Rokas Bekeris
Keyword(s):  
Interest Rate ◽  
Strong Correlation ◽  
Financial Indicators ◽  
Average Salary ◽  
Macroeconomic Factors ◽  
Monetary Base ◽  
Factors Affecting ◽  
Macroeconomic Indicators ◽  
Macroeconomic Impact ◽  
The Impact

Profitability is one of the most volatile company’s financial indicators: it is affected not only by internal but also by external, macro factors. Therefore, this research was aimed at evaluating the macroeconomic impact on SMEs’ profitability. The paper presents the model with the macroeconomic factors affecting the profitability of a SME, which includes the macroeconomic indicators such as population and firms’ number in a country, exports and imports, FDI, GDP, unemployment, inflation, taxes paid, average salary, and several others. The paper also deals with the dynamics of corporate profitability in Lithuania and shows a correlation between macro factors and corporate profitability. Most of the selected macroeconomic indicators such as inflation, average wages, the number of enterprises, the monetary base were found not to be statistically significant and had no strong correlation with corporate profitability. The VILIBOR interbank interest rate changes and the unemployment have the gretest impact on profitability.

scholarly journals Factors affecting the liquidity of commercial banks in India: a longitudinal analysis

2019 ◽  
Vol 14 (4) ◽  
pp. 78-88 ◽  
Author(s):  
Shyam Bhati ◽  
Anura De Zoysa ◽  
Wisuttorn Jitaree
Keyword(s):  
Significant Relationship ◽  
Random Effect ◽  
Consumer Price Index ◽  
Macroeconomic Factors ◽  
Return On Equity ◽  
Factors Affecting ◽  
Regulatory Factors ◽  
Long Term Effect ◽  
Indian Banks ◽  
Reserve Ratio

This paper examines the long-term effect of various regulatory, bank-specific and macroeconomic factors on the determination of liquidity in Indian banks. For this purpose, the study uses a random effect panel data regression model and tests it with data on Indian banks for 21 years, covering the period from 1996 to 2016. The model considers the effect of regulatory factors, cash reserve ratio, and statutory liquidity, and incorporates four different liquidity ratios specific to the Indian banking scenario. The results of the analysis show contrasting relationships between the independent variables and the dependent variables measured by four liquidity ratios.It is interesting to note that Indian banks rely more on asset-based liquidity and less on liability-based liquidity. More specifically, the most important liquidity ratio of L1 (liquid assets to total assets ratio) showed a significant relationship with macroeconomic variables of discount rates, call rates, foreign exchange reserve, exchange rate with US dollar, consumer price index and gross domestic product. L1 also showed a significant relationship with bank-specific variables of capital to total assets and bank size. However, the regulatory factors of cash reserve ratio and profitability determined by return on equity (ROE) and non-performing assets were not found to have any effect on liquidity of Indian banks.

scholarly journals Econometric model to estimate the Probability of Default and Loss Given Default in the EBA stress test in 2016

2019 ◽  
Vol 1 (1) ◽  
Author(s):  
Salvador Climent-Serrano
Keyword(s):  
Panel Data ◽  
Econometric Model ◽  
Stress Test ◽  
A Priori ◽  
Ordinary Least Squares ◽  
Probability Of Default ◽  
Macroeconomic Factors ◽  
Factors Affecting ◽  
Loss Given Default ◽  
Test Methodology

In this research, an econometric with panel data using Ordinary least squares OLS model is constructed following the guidelines recommended by the EBA stress test methodology for 2016. The findings indicate that macroeconomic factors affecting defaults are the expected ones in the Spanish credit institutions. However, loan impairments do not follow the patterns that a priori would be normal. Divergent is outcomes in defaults and impairments: the Non-Performing Loans (NPL) is pro-cyclical and impairment losses are counter-cyclical.

scholarly journals Macroeconomic Factors affecting CO2 Emissions in Malaysia: ARDL Approach

2020 ◽  
Vol 864 ◽  
pp. 012050
Author(s):  
Mohd Shahidan Shaari ◽  
Faiz Masnan ◽  
Nor Hidayah Harun ◽  
Nor Fadzilah Zainal
Keyword(s):  
Co2 Emissions ◽  
Macroeconomic Factors ◽  
Factors Affecting ◽  
Ardl Approach
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