scholarly journals Macroeconomic factors and firm’s cross-border merger and acquisitions

2014 ◽  
Vol 40 (2) ◽  
pp. 277-298 ◽  
Author(s):  
A. N. Bany-Ariffin ◽  
Mohamad Hisham ◽  
Carl B. McGowan
Keyword(s):  
Macroeconomic Factors ◽  
Cross Border ◽  
Merger And Acquisitions

scholarly journals What Drives Cross-Border Mergers and Acquisitions and Greenfield Foreign Direct Investment Capital Flows? Reconsideration in the Case of the Selected Former Yugoslav Countries

2021 ◽  
Vol 32 (3) ◽  
pp. 234-246
Author(s):  
Ksenija Denčić-Mihajlov ◽  
Vinko Lepojević ◽  
Jovana Stojanović
Keyword(s):  
Mergers And Acquisitions ◽  
Developing Economies ◽  
Random Effect ◽  
Random Effect Model ◽  
Foreign Direct Investments ◽  
Macroeconomic Factors ◽  
Fdi Inflows ◽  
Cross Border ◽  
Data Framework ◽  
The Impact

Bearing in mind the different nature and the impact of various types of foreign direct investments (FDI) on the one hand, and the specific macroeconomic environment in the post-socialist countries on the other hand, in this paper we reexamine the selected macroeconomic factors that affect the two types of FDI inflows (cross-border mergers and acquisitions and greenfield FDI) in four countries of the former Socialist Federal Republic of Yugoslavia. The study employs the balanced panel data framework and covers twelve-year period (2006-2017). Having performed the Hausman test, we use the random effect model and provide evidence that: (1) the key FDI macroeconomic determinants in stable business conditions, examined in numerous research studies, can have a different impact on FDI in times characterized by unstability and financial crisis, (2) some determinants of FDI inflows have different importance and direction in the case of cross-border M&A and greenfield FDI. Our findings are relevant for policymakers who should reconsider the key factors that fuel the FDI inflows towards their developing economies.

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 Effect of Tax System Characteristics on Cross-Border Mergers and Acquisitions

2021 ◽  
Author(s):  
Jodi M Henley
Keyword(s):  
Investment Decisions ◽  
Target Firm ◽  
Tax System ◽  
Cross Border ◽  
Tax Returns ◽  
Merger And Acquisitions ◽  
Tax Savings ◽  
Thin Capitalization ◽  
System Characteristics ◽  
Foreign Corporation

Although determinants of cross-border merger and acquisitions (M&As) have been given substantial attention in the literature, research examining the effect of tax system characteristics on cross-border M&As is more limited. Cross-border M&As have substantial tax implications for both the acquiring firm and the target firm. Because firms evaluate investments based on expected after-tax returns, I expect that managers consider potential tax savings or costs in making investment decisions across tax jurisdictions. In this study, I use hand-collected country-year-level tax system characteristics to examine tax determinants of the volume and direction of cross-border M&As. I find that tax system characteristics such as controlled foreign corporation provisions, thin capitalization provisions, and the presence of a worldwide versus territorial regime have a significant effect on cross-border M&A activity.

A case study of the HNA group cross-border M&A strategy

2016 ◽  
Vol 32 (9) ◽  
pp. 39-42
Author(s):  
Ying Xiao ◽  
Mark Thomas
Keyword(s):  
Single Case ◽  
International Strategy ◽  
International Capital ◽  
Case Study Method ◽  
Content Type ◽  
Cross Border ◽  
Group A ◽  
Pertinent Information ◽  
Merger And Acquisitions

Purpose The purpose of this article is to outline the reasons for the success of the Chinese HNA Group in the development of its international strategy. Design/methodology/approach The article adopts a critical single case study method approach. Findings The HNA Group has been highly successful using cross-border merger and acquisitions (M&As) as a platform for growth. However, Chinese companies are facing more difficulties compared to their international competitors in cross border M&A deals and are paying a higher premium for that. Even HNA Group, a veteran player in the international capital market, may not be exempted from the skeptics toward China money. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

The effects of inter-organizational compatibility on knowledge transfer in cross-border M&As

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ying Qi ◽  
Xiangyang Wang ◽  
Yujia Li ◽  
Gongyi Zhang ◽  
Huiqi Jin
Keyword(s):  
Knowledge Transfer ◽  
Mediation Model ◽  
Structural Effects ◽  
Content Type ◽  
Cross Border ◽  
Moderated Mediation Model ◽  
Cultural Compatibility ◽  
Merger And Acquisitions ◽  
Culture Strategy ◽  
The Relationship

PurposeThe study adopts congruence theory to explore the structure of inter-organizational compatibility and its structural effects on knowledge transfer in cross-border merger and acquisitions (M&As).Design/methodology/approachThis paper built a moderated-mediation model that presented the relationship between inter-organizational compatibility and knowledge transfer. Regression analysis was conducted with 182 samples from China to examine the model and hypotheses.FindingsThe results indicate that inter-organizational compatibility is a four-dimensional construct comprising culture, strategy, routine and knowledge. Additionally, inter-organizational compatibility has structural effects on knowledge transfer. Specifically, routine compatibility mediates the relationships between cultural compatibility and knowledge transfer and between strategic compatibility and knowledge transfer. Moreover, the mediating roles are moderated by knowledge compatibility.Originality/valueThis study updates the construct and provides a comprehensive and fresh understanding of inter-organizational compatibility. Additionally, it presents the structural effects of inter-organizational compatibility on knowledge transfer.

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