engleski

Determinants of incoming cross-border M&A: a comparison of developed and developing European countries

In today's turbulent and dynamic environment, every company must take into account markets’ requirements, changes in the business surroundings, activities of competitors and other relevant issues that are essential not only for the survival of the company but also for its further growth and development. Since companies use mergers and acquisitions (M&A) as a way to enter into new/foreign markets, gain higher competitiveness, improve profitability, increase market share, respond to the increasingly demanding needs of the market, etc. it is clear why M&A activities attract the attention of many scientists and practitioners. Although a number of authors have tried to investigate different aspects of M&A, these studies are mainly focused on the United States and the United Kingdom. Given the importance and the complexity of the topic there is still unsatisfied demand for further empirical analysis of M&A activity in the EU (both developed and developing countries). In that sense, this paper has two objectives. The first one is to present further evidence on the relationship between cross-border M&A’s and economic activities in the EU market. The second aim is to provide further insight into the differences between developing and developed EU market economies. In order to accomplish objectives of the paper, dynamic panel models have been estimated using Arellano and Bond GMM estimator for the period 1994-2009.

incoming cross-border M&A ; developed and developing European countries

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