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Ekonomická integrácia a jej vplyv na cezhraničné fúzie a akvizície v európskom priestore
[Economic Integration and Its Influence on Cross-Border Mergers and Acquisitions within the European Area]

Author

Listed:
  • Jaroslava Hečková
  • Alexandra Chapčáková
  • Eva Litavcová

Abstract

The main target of the paper is to identify the influences of the financial and trade liberalization in the EU and the functioning of the EMU on the realization of the cross-border mergers and acquisitions among the selected states of the European territory. We analyse in the paper, concerning the theoretical background of the foreign scientific studies on the influence of the integration processes in Europe on the realization of the cross-border mergers and acquisitions, the influence of the selected predictors on the cross-border mergers and acquisitions realized in 16 source countries and 25 target countries in the European territory from 1998 to 2012 (database data created by the authors) through the generalized linear model. Empirical results of several foreign studies (e.g. Bjortvan, 2004, Neary, 2007, Brouwer, Paap, Viaene, 2008, Coeurdacier, De Santos, Aviat, 2009 etc.) indicate that European integration had a positive impact on the development of cross-border mergers and acquisitions especially in manufacturing sector. We came to the same conclusion based on our analyses, while the integration into the EU has a critical influence, which is significantly higher in manufacturing sector. The influence of the integration into the EMU can be regarded as additional and it is identical for manufacturing sector and service sector. We can claim definitely that the institutional changes, such as the unified market of the European Union and the European Monetary Union were releasing factors of capital reallocation all over the world. The European Monetary Union encouraged the capital reallocation through the effects of unilateral financial liberalization (a decrease of marginal and fixed costs for execution of reallocation transactions) and thus facilitated the implementation of cross-border mergers and acquisitions in the European area.

Suggested Citation

  • Jaroslava Hečková & Alexandra Chapčáková & Eva Litavcová, 2016. "Ekonomická integrácia a jej vplyv na cezhraničné fúzie a akvizície v európskom priestore [Economic Integration and Its Influence on Cross-Border Mergers and Acquisitions within the European Area]," Politická ekonomie, Prague University of Economics and Business, vol. 2016(1), pages 19-33.
    • Handle: RePEc:prg:jnlpol:v:2016:y:2016:i:1:id:1052:p:19-33
    DOI: 10.18267/j.polek.1052
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    References listed on IDEAS

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    1. Stefano Schiavo, 2007. "Common currencies and FDI flows," Oxford Economic Papers, Oxford University Press, vol. 59(3), pages 536-560, July.
    2. Stähler, Frank & Raff, Horst & Long, Ngo Van, 2007. "The Effects of Trade Liberalization on Productivity and Welfare: The Role of Firm Heterogeneity, R&D and Market Structure," Economics Working Papers 2007-20, Christian-Albrechts-University of Kiel, Department of Economics.
    3. Nicolas Coeurdacier & Roberto A. De Santis & Antonin Aviat, 2009. "Cross-border mergers and acquisitions and European integration [‘Capital flows in a globalised world: The role of policies and institutions’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 24(57), pages 56-106.
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    More about this item

    Keywords

    generalized least squares; European Union; European monetary union; European area; Economic Integration; dummy variablesc; cross-border mergers and acquisitions;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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