The Effect of the Brexit on cross-border M&A in the UK

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2020-08-20

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en

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This study aims to research the influence of Brexit on the cross-border M&A activity in the UK. The existing literature of the determinants that affect cross-border M&A activity is used to make a connection with the Brexit announcement. The macro-economic variables that are influenced by Brexit and influence cross-border M&A activity are: stock market, exchange rate, GDP, interest rate and inflation. The data that is used for this study is monthly data from 2000 up to and including 2019. The three-step mediation analysis measure the relationships of the variables. The relationship between Brexit and the macro-economic variables is measured in the first step. In the second step the relationship is measured of Brexit on cross-border M&A activity. In the third step the relationship is measured of Brexit and the macro-economic variables on cross-border M&A activity. The results showed that Brexit leads to an increase in cross-border M&A, and that this effect is mediated by a higher value of the stock market.

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Faculteit der Managementwetenschappen

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