IDEAS home Printed from https://ideas.repec.org/a/scn/00rbes/y2017i1p70-78.html
   My bibliography  Save this article

Влияние Обменных Курсов На Рынок Слияний И Поглощений В Странах Брик // What Impact Do Currency Exchange Rates Have On The M&A Market In Bric Countries?

Author

Listed:
  • K. Bondareva

    (Finance University under the Government of the Russian Federation)

  • К. Бондарева

    (Финансовый университет)

Abstract

This paper tries to examine how currency exchange rates are influencing the M&A market in BRIC countries. Therefore the amount of M&A deals is defined as the dependent variable. Next to the currency exchange rate further variables like GDP growth rate, Stock (size of stockmarket) and money and quasi money growth are included this model. This data was gathered by the World Bank and modifyed for the right purpose. We used yearly data from 1994-2014 by 4 different countries. But in consequence of the fact that not all the data is availiable since 1994 we were able to obtain 64 observations. By using panel data with fix effects and lags this paper tries to display the impact of currency exchange rates on the M&A market through 4 cross-sectional units in a time period of 14 years (without timelags). After estimating the model we came to the conclusion that currency exchanges have a negative effect which is mostly sicnificant in the second period.

Suggested Citation

  • K. Bondareva & К. Бондарева, 2017. "Влияние Обменных Курсов На Рынок Слияний И Поглощений В Странах Брик // What Impact Do Currency Exchange Rates Have On The M&A Market In Bric Countries?," Review of Business and Economics Studies // Review of Business and Economics Studies, Финансовый Университет // Financial University, vol. 5(1), pages 70-78.
    • Handle: RePEc:scn:00rbes:y:2017:i:1:p:70-78
    as

    Download full text from publisher

    File URL: https://rbes.fa.ru/jour/article/viewFile/56/56.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Malcolm Baker & C. Fritz Foley & Jeffrey Wurgler, 2009. "Multinationals as Arbitrageurs: The Effect of Stock Market Valuations on Foreign Direct Investment," The Review of Financial Studies, Society for Financial Studies, vol. 22(1), pages 337-369, January.
    2. Robin Brooks & Hali Edison & Manmohan S. Kumar & Torsten Sløk, 2004. "Exchange Rates and Capital Flows," European Financial Management, European Financial Management Association, vol. 10(3), pages 511-533, September.
    3. Wong, Wei-Kang, 2008. "Comparing the fit of the gravity model for different cross-border flows," Economics Letters, Elsevier, vol. 99(3), pages 474-477, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lin, Wenlian & Cao, Jerry & Zhou, Sili & Li, Yong, 2024. "Political affinity, multilateralism, and foreign direct investment worldwide," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 94(C).
    2. Jacob Gyntelberg & Mico Loretan & Tientip Subhanij & Eric Chan, 2010. "Private information, stock markets, and exchange rates," BIS Papers chapters, in: Bank for International Settlements (ed.), The international financial crisis and policy challenges in Asia and the Pacific, volume 52, pages 186-210, Bank for International Settlements.
    3. Azzimonti, Marina, 2019. "Does partisan conflict deter FDI inflows to the US?," Journal of International Economics, Elsevier, vol. 120(C), pages 162-178.
    4. repec:dpr:wpaper:0888 is not listed on IDEAS
    5. Renato Filosa, 2003. "Shock monetari e reali, ciclo economico e valore dell' euro," Moneta e Credito, Economia civile, vol. 56(223), pages 295-324.
    6. Leonidas G Barbopoulos & Jo Danbolt & Dimitris Alexakis, 2018. "The role of earnout financing on the valuation effects of global diversification," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(5), pages 523-551, July.
    7. Kari Heimonen, 2006. "Time-Varying Fundamentals of the Euro-Dollar Exchange Rate," International Economic Journal, Taylor & Francis Journals, vol. 20(4), pages 385-407.
    8. Elitsa R. Banalieva & Ravi Sarathy, 2011. "A Contingency Theory of Internationalization," Management International Review, Springer, vol. 51(5), pages 593-634, October.
    9. Hyun Song Shin & Viral Acharya & Tanju Yorulmazer, 2011. "Fire Sale FDI," Korean Economic Review, Korean Economic Association, vol. 27, pages 163-202.
    10. Lin Yuan & Xiaolin Qian & Nitin Pangarkar, 2016. "Market Timing and Internationalization Decisions: A Contingency Perspective," Journal of Management Studies, Wiley Blackwell, vol. 53(4), pages 497-519, June.
    11. Xie, En & Reddy, K.S. & Liang, Jie, 2017. "Country-specific determinants of cross-border mergers and acquisitions: A comprehensive review and future research directions," Journal of World Business, Elsevier, vol. 52(2), pages 127-183.
    12. Yutaka Kurihara, 2015. "Are Japanese Stock Prices Important Deterministic Elements of Exchange Rate Returns?," Bulletin of Applied Economics, Risk Market Journals, vol. 2(2), pages 1-9.
    13. Isil Erel & Rose C. Liao & Michael S. Weisbach, 2012. "Determinants of Cross‐Border Mergers and Acquisitions," Journal of Finance, American Finance Association, vol. 67(3), pages 1045-1082, June.
    14. Dang, Man & Henry, Darren & Nguyen, Manh Toan & Hoang, Viet Anh, 2018. "Cross-country determinants of ownership choices in cross-border acquisitions: Evidence from emerging markets," Journal of Multinational Financial Management, Elsevier, vol. 44(C), pages 14-35.
    15. Tosapol Apaitan & Pongsak Luangaram & Pym Manopimoke, 2022. "Uncertainty in an emerging market economy: evidence from Thailand," Empirical Economics, Springer, vol. 62(3), pages 933-989, March.
    16. Alessandro Prati & Massimo Sbracia, 2002. "Currency crises and uncertainty about fundamentals," Temi di discussione (Economic working papers) 446, Bank of Italy, Economic Research and International Relations Area.
    17. Martijn J. Burger & Elena I. Ianchovichina, 2017. "Surges and stops in greenfield and M&A FDI flows to developing countries: analysis by mode of entry," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 153(2), pages 411-432, May.
    18. Aizenman, Joshua & Binici, Mahir, 2016. "Exchange market pressure in OECD and emerging economies: Domestic vs. external factors and capital flows in the old and new normal," Journal of International Money and Finance, Elsevier, vol. 66(C), pages 65-87.
    19. Malcolm Baker & Xin Pan & Jeffrey Wurgler, 2009. "A Reference Point Theory of Mergers and Acquisitions," NBER Working Papers 15551, National Bureau of Economic Research, Inc.
    20. Guglielmo Maria Caporale & Faek Menla Ali & Fabio Spagnolo & Nicola Spagnolo, 2015. "International Portfolio Flows and Exchange Rate Volatility for Emerging Markets," CESifo Working Paper Series 5615, CESifo.
    21. April M. Knill, 2013. "Does Foreign Portfolio Investment Reach Small Listed Firms?," European Financial Management, European Financial Management Association, vol. 19(2), pages 251-303, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:scn:00rbes:y:2017:i:1:p:70-78. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Алексей Скалабан (email available below). General contact details of provider: http://rbes.fa.ru/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.