The Role of Cross-Border Mergers and Acquisitions in Foreign Direct Investment: Evidence from the Chinese Stock Market

2009 ◽  
Author(s):  
Okhwa Ahn
Keyword(s):  
Foreign Direct Investment ◽  
Stock Market ◽  
Mergers And Acquisitions ◽  
Direct Investment ◽  
Chinese Stock Market ◽  
Cross Border

Foreign Direct Investment

2017 ◽  
Author(s):  
Yilmaz Akyüz
Keyword(s):  
Foreign Direct Investment ◽  
Mergers And Acquisitions ◽  
Financial Markets ◽  
Foreign Exchange ◽  
Direct Investment ◽  
Balance Of Payments ◽  
Productive Capacity ◽  
Cross Border ◽  
Direct Contribution ◽  
High Profit

Recent years have also seen increased openness of EDEs to foreign direct investment (FDI) in search for faster growth and greater stability. However, FDI is one of the most ambiguous and least understood concepts in international economics. Common debate is confounded by several myths regarding its nature and impact. It is often portrayed as a stable, cross-border flow of capital that adds to productive capacity and meets foreign exchange shortfalls. However, the reality is far more complex. FDI does not always involve inflows of financial or real capital. Greenfield investment, unlike mergers and acquisitions, makes a direct contribution to productive capacity, but can crowd out domestic investors. FDI can induce significant instability in currency and financial markets. Its immediate contribution to balance-of-payments may be positive, but its longer-term impact is often negative because of high-profit remittances and import contents.

Does the origin matter? The effects of cross-border mergers and acquisitions in France

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Federico Carril-Caccia
Keyword(s):  
Foreign Direct Investment ◽  
Mergers And Acquisitions ◽  
Direct Investment ◽  
Developed Countries ◽  
Emerging Countries ◽  
Intangible Asset ◽  
Data Set ◽  
Content Type ◽  
Cross Border ◽  
The Impact

PurposeThe present article analyses the effects of cross-border mergers and acquisitions (CBM&As) on targets' total factor productivity (TFP), employment, wages and intangible-asset investment. The author investigates whether the impact of CBM&As differs depending on the origin of the investing multinational (MNE). The author distinguishes between CBM&As from European countries, other developed countries and emerging countries.Design/methodology/approachThe author makes use of a unique firm-level data set of foreign direct investment in the French manufacturing sector. The authors applies propensity score matching and difference in differences to estimate the effect of CBM&As.FindingsThe results show that the consequences of CBM&As differ strongly depending on the origin. CBM&As from European MNEs have a positive impact on TFP, wages and intangible-asset investment, and those from emerging countries seem to increase wages and intangible-asset investments. In contrast, CBM&As that originate from MNEs from other developed countries do not have a significant effect.Originality/valueThis article contributes to the growing literature on the effects of foreign direct investment that highlights the relevance of accounting for the MNEs' origin. In particular, it is the first to address the impact of emerging-country MNEs' CBM&As in Europe.

scholarly journals The Role of Foreign Direct Investment in Stock Market Development in Nigeria: A Test of Complementarity

2020 ◽  
Vol 12 (2) ◽  
pp. 175-186
Author(s):  
Gbenga Festus Babarinde ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Stock Market ◽  
Least Squares ◽  
Granger Causality ◽  
Direct Investment ◽  
Ordinary Least Squares ◽  
Market Development ◽  
Stock Market Development ◽  
Nigerian Government

This paper examines the role of foreign direct investment (FDI) in stock marketdevelopment in Nigeria for the period 1981-2018 via Dynamic Ordinary Least Squares(DOLS)and pairwise Granger causality techniques. Empirical Öndings indicate that FDI plays apositive signiÖcant role in the development stock market in Nigeria. Also, a unidirectionalcausality áows from FDI to stock market development. This study concludes that FDI con-stitutes a catalyst to stock market development in Nigeria, which implies the complementaryrole of FDI in stock market. Therefore, Nigerian government should ensure investors-friendlymacroeconomic framework and implement policies to encourage ináows of FDI in Nigeria.

scholarly journals The Role of FDI on Stock Market Development: The Case of Pakistan

2012 ◽  
Vol 4 (1) ◽  
pp. 26-33 ◽  
Author(s):  
Ali Raza ◽  
Zeshan Ahmed . ◽  
Mohammad Ahmed . ◽  
Tanvir Ahmed .
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Stock Market ◽  
Stock Markets ◽  
Direct Investment ◽  
Market Development ◽  
Political Environment ◽  
Stock Market Development ◽  
Domestic Savings

The purpose of this study is to empirically analyze the role of foreign direct investment in developing host country’s stock markets and to examine whether they are related or not. The key interest turns around the admiring role of FDI in Stock market development of Pakistan. Our work also aims to investigate the effect of foreign direct investment along with domestic savings, exchange rate and inflation in developing Pakistan stock markets in a rapidly changing political environment. This study applies Ordinary Least Square (OLS) method of regression by using annual time series data for the period 1988-2009 in case of Pakistan to estimate empirical relationships among variables. The results disclose a positive impact of foreign direct investment along with other explanatory variables in developing Stock markets of Pakistan. The study findings can be used to help government policy makers to encourage FDI and take various steps to provide incentives and save foreign investors interest in a volatile political environment that prevailing in the country. Adequate facility of infrastructure can enhance FDI. The volatility of exchange rate and inflation rate should also be minimized through monitory policy while domestic savings must also be encouraged in the country through appropriate and encouraging saving policies. Our effort exclusively study development of Stock markets in Pakistan with special reference to foreign direct investment and other variables. Our study depicts a closer relationship between FDI and Stock Market Development.

World capital flows under global instability

2021 ◽  
pp. 68
Author(s):  
I. Kvashnina
Keyword(s):  
Economic Policy ◽  
Foreign Direct Investment ◽  
Economic Crisis ◽  
Capital Flows ◽  
Direct Investment ◽  
International Institutions ◽  
Global Instability ◽  
Cross Border ◽  
Role Of The State

The article examines the changes in the cross-border capital flows that have taken place in recent years, including those caused by COVID-19 pandemic and economic crisis.   Negative trends in the movement of foreign direct investment are noted and the prospects for their growth are analyzed. Considering the measures of economic policy in relation to investment, the author comes to the conclusion that the role of the state will inevitably strengthen, as well as that of  international institutions.

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