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International Food and Agribusiness Management Review >
Volume 06, Issue 04, 2003 >
Please use this identifier to cite or link to this item:
http://purl.umn.edu/34373
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| Title: | Factors Affecting International Mergers and Acquisitions |
| Authors: | Reed, Michael R.
Babool, Md. Ashfaqul Islam |
| Authors (Email): | Reed, Michael (mrreed@uky.edu) |
| Issue Date: | 2003 |
| Abstract: | The purpose of this paper is to investigate the factors that explain outward and inward merger and acquisition (M/A) activity for a country. The variables used to explain M/A activity include the exchange rate, interest rate, and stock market prices. Regression analysis is used to isolate and clarify the effects of these three factors for aggregate M/A activity and M/A activity within the food, beverage, and tobacco industry.
The analysis shows that three variables, the exchange rate, interest rate, and stock prices, are quite important in explaining variations in M/A activity by country. Exchange rate changes in particular have a very elastic impact on outward M/A activity, indicating that price effects are important in determining outward investment flows. The stock market index positively influenced inward and outward M/A activity. The interest rate had a negative impact on M/A in the inward and outward M/A models with M/A outflows decreasing by about the same percentage that interest rates increase. |
| URI: | http://purl.umn.edu/34373 |
| Institution/Association: | International Food and Agribusiness Management Review>Volume 06, Issue 04, 2003 |
| Total Pages: | 15 |
| Language: | English |
| Collections: | Volume 06, Issue 04, 2003
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