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Fusions et acquisitions trans‐frontalières: est‐ce que le taux de change a de l'importance? Quelques résultats pour le Canada.
Author(s) -
Georgopoulos George J.
Publication year - 2008
Publication title -
canadian journal of economics/revue canadienne d'économique
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.773
H-Index - 69
eISSN - 1540-5982
pISSN - 0008-4085
DOI - 10.1111/j.1365-2966.2008.00470.x
Subject(s) - depreciation (economics) , liberian dollar , currency , mergers and acquisitions , monetary economics , exchange rate , business , asset (computer security) , tariff , value (mathematics) , international economics , economics , international trade , finance , microeconomics , profit (economics) , computer security , machine learning , financial capital , computer science , capital formation
. Theoretical and empirical studies investigating the relationship between the exchange rate and FDI have generated mixed results. Using bilateral Canadian‐U.S. industry level count data on cross‐border mergers and acquisitions (M&As) and conditioning on industry tariff rates, value added share of industries, industry M&A trend activity, and the number of establishments, we find evidence that a real dollar depreciation of the home currency leads to an increase in the probability of foreign M&As but only in high R&D industries. These empirical results are consistent with Blonigen's asset acquisition hypothesis. Results on European M&As of Canadian firms also lean towards this result.