Abstract

CORTES, Lina M.; GARCIA, John J.  and  ARISTIZABAL LOPEZ, Brayan. MERGERS AND ACQUISITIONS IN LATIN AMERICA: ANALYZING THE INFLUENCE OF MACROECONOMIC VARIABLES. Ens. polit. econ. [online]. 2018, vol.36, n.86, pp.178-192.  Epub June 26, 2019. ISSN 0120-4483.  https://doi.org/10.32468/espe.8602.

The present study analyzes the influence of macroeconomic variables, especially the economic cycle, on the number of FyA in Latin America between 1995 and 2014. Using PCSE and Negative Binomial models, it is found that macroeconomic variables at target country level have an effect on FyA and explain around one-third of the activity variation. Specifically, it is noted that the economic cycle, liquidity and depreciation have a positive effect on such transactions, while inflation has a negative effect. In addition, it is observed that the impact of the economic cycle is much greater when dealing with cross-border transactions and, after correcting problems of business cycle symmetry, FyA activity is larger during times of expansion compared to recession periods.

JEL Classification: C23, G34, E32.

Keywords : Mergers and acquisitions; Macroeconomic variables; Economic cycle.

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