Effect of Macro Economic Factors On Cross Border Merger And Acquisition Activities

International Journal of Economics and Management Studies

© 2021 by SSRG - IJEMS Journal

Volume 8 Issue 4

Year of Publication : 2021

Authors : Made Nita Dwi Sawitri, Ida Bagus Panji Sedana

10.14445/23939125/IJEMS-V8I4P102

How to Cite?

Made Nita Dwi Sawitri, Ida Bagus Panji Sedana, "Effect of Macro Economic Factors On Cross Border Merger And Acquisition Activities," SSRG International Journal of Economics and Management Studies, vol. 8,  no. 4, pp. 8-16, 2021. Crossref, https://doi.org/10.14445/23939125/IJEMS-V8I4P102

Abstract:

This paper aims to examine the influence of major macroeconomic factors on inward acquisitions from Asian countries that are members of APEC, namely, China, Hong Kong, Indonesia, Korea, Malaysia, the Philippines, Singapore, Thailand, Vietnam, and the 2010- period. 2019. This study uses the panel data method through the Fixed Effect Method approach. The results show that gross domestic product (GDP), money supply, inflation, interest rates, and exchange rates are macroeconomic factors that explain CBMA activity. The results of the analysis show that the variables that have a significant positive effect on CBMA activity are the GDP variable, the money supply variable, while the variables that have a significant negative effect on CBMA activities are the inflation variable, the interest rate variable, and the exchange rate variable. The limitation of this study is the unavailability of data, so that it limits this study to only nine sample countries. The results of this research can provide information to companies or investors involved in cross-border mergers and acquisitions, where to direct the flow of foreign resources.

Keywords:

Macroeconomics, Cross-border mergers and acquisitions, Dunning's Theory, Panel Data

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