The determinants of value of incoming cross-border mergers & acquisitions in European transition countries

This research aims to determine variables that affect the aggregate value of incoming cross-border M&As in European transitional countries. Dynamic panel models have been estimated using Arellano and Bond GMM estimator for period between year 1994 and 2008. The ratio of the total value of cross-border M&A to GDP of the country is the dependent variable. Independent variables include following indicators: lagged value of cross-border M&A to GDP, lagged GDP per capita, lagged GDP growth, inflation, interest rate spread, lagged private credit to GDP ratio, market capitalization to GDP ratio, lagged rule of law and lagged control of corruption.

► The Determinants of Incoming Cross-Border M&A in European Transition Countries. ► Analysis for period between year 1994 and 2008 using ten dynamic panel models. ► Macroeconomic, financial and governance indicators as explanatory variables. ► Governance indicators are more important then financial indicators. ► Interest rate spread and economic growth are likely to attract cross-border M&As.