EUROPEAN JOURNAL OF ACCOUNTING, FINANCE & BUSINESS

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ISSN: 2344 - 102X

ISSN-L: 2344 - 102X



 

Article from Volume 10, Number 2, Year 2022

INTERCONDITIONALITY BETWEEN THE DYNAMICS OF MERGERS AND ACQUISITIONS AND MACROECONOMIC FACTORS
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Author(s): Ecaterina Ulian
DOI: 10.4316/EJAFB.2022.1028
Abstract: This article aims to test the hypothesis that between the activity of mergers and acquisitions and the factors of a macroeconomic nature is a relationship of interdependence. The synthesis of the literature highlighted that among the most frequently approached factors can be mentioned the following: the exchange rate, tax rate, capital market interest rate and GDP. By applying regression analysis and correlation for a data set covering the period from 1985 to 2020, a close link was established between the evolution of the number of mergers and acquisitions and the evolution of World GDP. The other factors have an insignificant influence. This is explained by the fact that mergers and acquisitions themselves are an accelerating factor for the sustainable development and growth of the business, stimulating innovation, technology development, modernization and therefore economic growth. And all this is reflected in GDP growth.
Keywords: Analysis; Corporate Tax Rate; Factor; GDP; Mergers And Acquisitions; Macroeconomic.
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