Impact of the selected predictors on cross-border mergers and acquisitions in the industry and service sectors

Abstract

Since 1990s, the popularity of mergers and acquisitions and cross-border M&A has greatly increased thanks to globalization and technological development. Cross-border mergers and acquisitions are a major global phenomenon that enables businesses to create synergies for business, acquire discounted assets, create tax savings, gain access to new technologies, diversify business activities, increase competitiveness and market value. The main objective of the contribution is to identify the impact of the selected predictors on the volume of cross-border mergers and acquisitions made between the selected countries of the European area in the manufacturing and services sectors in the period 1998 to 2015. The database used for this analysis contains records of cross-border M&A carried out in the European Economic Area (EEA) and in Turkey, the data of which were taken from the Zephyr database (Bureau van Dijk, 2016). The contribution focuses on two basic attributes, the time sector and the type of sectoral relevance (services and industry). On the basis of the regression analysis, the impact of the selected predictors on cross-border mergers and acquisitions in the industry and service sectors is analysed. The results of the analysis point to the fact that entities in the surveyed sample of countries in the European area prefer investments that lead to strengthening of their market position within economies. The analysis also found that investments from European countries were centred mainly on relatively close economies that are culturally and linguistically close to each other.