Evidence of fire-sale M&A in European transition countries

Abstract

The aim of this paper is to determine differences in variables that create investment climate and therefore affect the values of incoming crossborder M&A in selected European transition countries. Cluster analysis for 1999 and 2007 shows that countries with unfavourable investment climate received high levels of incoming cross-border M&A. Sole country in the cluster characterised by healthy investment area (Slovenia) had the highest gdp per capita accompanied with the lowest values of incoming cross-border M&A relative to its GDP. These results could be interpreted as an evidence of fire-sale M&A in most European transition countries. In 2010, situation changed and although recession left trace, data on cross-border M&A indicate that foreign investors focused more on companies which operated in countries with healthier economy. These results indicate that a healthy investment climate is necessary to provide a sustainable economic development of a country.

Keywords

cross-border M&A;fire-sale M&A;sustainable economic development;investment climate;

Data

Language:	English
Year of publishing:	2012
Typology:	1.01 - Original Scientific Article
Organization:	UP FM - Faculty of Management Koper
UDC:	339.9:336.581
COBISS:	4638679
ISSN:	1854-6935
Parent publication:	Managing global transitions
Views:	3130
Downloads:	73
Average score:	0 (0 votes)
Metadata:

Other data

Secondary language:	Slovenian
Secondary keywords:	mednarodne združitve in pripojitve;tržna cena;trajnostni gospodarski razvoj;investicijsko okolje;
URN:	URN:NBN:SI
Type (COBISS):	Not categorized
System comment:	Sistemske zahteve: Adobe Reader
Pages:	str. 325-340, 419
Volume:	ǂVol. ǂ10
Issue:	ǂno. ǂ4
Chronology:	Winter 2012
Keywords (UDC):	social sciences;družbene vede;economics;economic science;ekonomija;ekonomske vede;trade;commerce;international economic relations;world economy;trgovina;tržišče;marketing;international economy generally;international economic relations;global economy;mednarodno gospodarstvo;mednarodni gospodarski odnosi;svetovno gospodarstvo;social sciences;družbene vede;economics;economic science;ekonomija;ekonomske vede;finance;finance;public expenditure;state expenditure;javna poraba;javni izdatki;javnofinančni odhodki;državna poraba;državni izdatki;
ID:	78149