Economic and Institutional Determinants of Mergers & Acquisitions in BRICS, G7 and G20 Economies

Bhattarai, Keshab; Prasuna, Asha; Kumar, S. N. V. Siva

Abstract

Factors contributing towards increasing the number of mergers and acquisitions (M &A) among firms and the volume of business and sales of these firms are assessed empiricallybased on results of the static and dynamic panel data models for BRICS, G7 and G20 countries in this investigation. While the higher rates of economic growth and foreign direct investment (FDI) contribute positively to the occurrence of M &A activities, these effects are even more prominent with greater efficiency in government institution, qualities of regulation, voice accountability and control of corruption. In the meantime, higher inflation and corporation tax rates reduce not only the numbers but the volumes of the M & A activities. Size of the business matters, medium or large corporations merge to exploit scale economies, to benefit from larger markets and to retain market power by operating across the globe. .

Citation

Bhattarai, K., Prasuna, A., & Kumar, S. N. V. S. (in press). Economic and Institutional Determinants of Mergers & Acquisitions in BRICS, G7 and G20 Economies. Journal of Applied Business and Economics,

• Journal Article Type: Article
• Acceptance Date: Sep 15, 2021
• Deposit Date: Sep 22, 2021
• Publicly Available Date: Oct 27, 2022
• Journal: Journal of Applied Business and Economics
• Print ISSN: 1499-691X
• Publisher: North American Business Press
• Peer Reviewed: Peer Reviewed
• Keywords: Mergers acquisitions; Government policy and regulation; International investment; Comparative studies of countries; Panel data models
• Public URL: https://hull-repository.worktribe.com/output/3841881
• Publisher URL: Current: https://articlegateway.com/index.php/JABE/index