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

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

doi:10.1016/j.ribaf.2013.08.001

Cited by 37 publications

(34 citation statements)

References 47 publications

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“…Kiymaz (2009) notes that in making a foreign investment decision the investor should make sure that the investment is destined for a market where risk is comparatively lower in relation to similar investments elsewhere. Both the market potential and market risk can be assessed using various macroeconomic factors including gross domestic product, interest rate, capital market indicators, exchange rate and inflation (Kiymaz, 2009;Boateng et al, 2014). Hawawini et al (1994) suggest that internal influences are closely allied to a firm's assets, competencies and competitive advantages, however, researchers such as Nachum andRolle (1999) andTolentino (2010) argue that external or environmental factors are also crucial to a firm's competitive advantage in that they provide the context in which a firm makes its decisions.…”

Section: Theoretical Background and Hypothesesmentioning

confidence: 99%

Examining the determinants of inward FDI: Evidence from Norway

et al. 2015

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Section: Theoretical Background and Hypothesesmentioning

confidence: 99%

Examining the determinants of inward FDI: Evidence from Norway

et al. 2015

Self Cite

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“…this explains why emphasis, particularly in developing countries, is placed on country specific factors that tend to reduce business risk and enhance market potentials. as pointed by Kiymaz (2009) and Boateng et al (2014), macroeconomic factors including gDP, exchange rate and inflation among several others, provide the means for assessing market potentials and market risk. indeed, it is contended that internal influences are intricately linked to a firm's assets, competencies and competitive advantages (Hawawini and schill, 1994).…”

Section: Literature Reviewmentioning

confidence: 99%

Determinants of Foreign Direct Investment in Nigeria: A Markov Regime-Switching Approach

Enisan

2017

RIC

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Several studies have analyzed the movement of foreign direct investment in Nigeria using linear approach. In contrast with all existing studies in Nigeria, this paper runs several non linear FDI equations where the main determinants of FDI are determined using Markov-Regime Switching Model (MSMs). The approach enables us to observe structural changes, where exist, in FDI equations through time. Asides, where FDI regression equation is truly nonlinear, MSMs fit data better than the linear models. The paper adopts maximum likelihood methodology of Markov-Regime Model (MSM) to identify possible structural changes in level and/or trends and possible changes in parameters of independent variables through the transition probabilities. The results show that FDI process in Nigeria is governed by two different regimes and a shift from one regime to another regime depends on transition probabilities. The results show that the main determinants of FDI are GDP growth, macro instability, financial development, exchange rate, inflation and discount rate. This implies liberalization that stems inflation and enhance the value of domestic currency will attract more FDI into the country.

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“…Applying the principle of analogy, it can be assumed that countries from groups with similar economic development may have a similar premium in mergers and acquisitions. The importance of analysing macroeconomic factors also follows from the studies of A. Boateng et al [11] and A. Bonaime et al [12]. The authors of [11] conclude that macroeconomic factors are an essential variable that determines the behaviour of firms in mergers and acquisitions.…”

Section: Literature Review and Hypothesesmentioning

confidence: 99%

“…The importance of analysing macroeconomic factors also follows from the studies of A. Boateng et al [11] and A. Bonaime et al [12]. The authors of [11] conclude that macroeconomic factors are an essential variable that determines the behaviour of firms in mergers and acquisitions. The Bonaime study [12] emphasises that political factors determine the intensity of mergers and acquisitions in a particular country: a higher level of political instability means a lower intensity of mergers and acquisitions.…”

Section: Literature Review and Hypothesesmentioning

confidence: 99%

Premium evaluation in mergers and acquisitions of electricity companies

Sterkhov

2019

КФ

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The purpose of the article is to build a model for estimating the relative premium in mergers and acquisitions of electric power companies, based on four groups of factors: the company's operating and financial results, the country affiliation, the industry affiliation, the debt market conjuncture. The research methodology is based on a comparative business valuation method. The empirical base of the research includes data on 6504 deals that occurred throughout the world from 1997 to 2018. The research database includes data on both public and non-public companies for which the amount paid in the deal is known, as well as the value of total assets. The scientific novelty consists in clarifying the conceptual apparatus (the concept of relative premium in a deal has been introduced); the selection and grouping of factors affecting the size of the relative premium; identifying and quantifying the influence of variables included in each group of factors. The article proposed the author's approach to the grouping of countries and industries, based on the equality of premium coefficients in the regression and obtained groups of countries and industries with equal premiums. It is shown that the grouping of industries, obtained by the mathematical algorithm, almost completely corresponds to the industry structure of the electric power industry. The coefficient of determination of the final econometric model is more than 20 per cent, which can be estimated as a high-quality assessment. That is because the relative premium, not the amount paid in the deal, is predicted which is in close correlation with the value of the company's assets. The practical significance of the research study consists in the possibility of predicting the value of a business, as well as determining the value paid in a deal in cases where such information is not available in available sources.

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

Cited by 37 publications

References 47 publications

Examining the determinants of inward FDI: Evidence from Norway

Examining the determinants of inward FDI: Evidence from Norway

Determinants of Foreign Direct Investment in Nigeria: A Markov Regime-Switching Approach

Premium evaluation in mergers and acquisitions of electricity companies

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