Does Economic Policy Uncertainty Affect M&A Operations? Evidence from the Brazilian Market
The objective of this work was to investigate the effect of Economic Policy Uncertainty on Mergers and Acquisitions operations of listed companies in Brazil. For this purpose, we have run a binomial logistic regression model to verify the impact of Economic Policy Uncertainty on the propensity for M...
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| Format: | Article |
| Language: | English |
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FUCAPE Business School
2023-01-01
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| Series: | BBR: Brazilian Business Review |
| Subjects: | |
| Online Access: | http://www.redalyc.org/articulo.oa?id=123075339002 |
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| _version_ | 1825207293979918336 |
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| author | Alexandre Teixeira Norberto Batista Wagner Moura Lamounier Poueri do Carmo Mário |
| author_facet | Alexandre Teixeira Norberto Batista Wagner Moura Lamounier Poueri do Carmo Mário |
| author_sort | Alexandre Teixeira Norberto Batista |
| collection | DOAJ |
| description | The objective of this work was to investigate the effect of Economic Policy Uncertainty on Mergers and Acquisitions operations of listed companies in Brazil. For this purpose, we have run a binomial logistic regression model to verify the impact of Economic Policy Uncertainty on the propensity for Mergers and Acquisitions in the following year. Using a sample of 128 publicly traded non-financial companies, from 2010 to 2018, we identified that Economic Policy Uncertainty reduces the propensity of acquiring firms to engage in Mergers and Acquisitions activities. The alternative metric used as a proxy for uncertainty, the Economic Uncertainty Indicator - Brazil, was not statistically significant. The results are consistent with international evidence. This study proposes a hybrid model that can be used to estimate the propensity for Mergers and Acquisitions in other contexts. Furthermore, it contributes to a series of emerging discussions on factors triggered by economic policy uncertainty that can alter the dynamics of corporate decisions. |
| format | Article |
| id | doaj-art-c858df3955e24f2594dcaa3a343efb7e |
| institution | Kabale University |
| issn | 1807-734X |
| language | English |
| publishDate | 2023-01-01 |
| publisher | FUCAPE Business School |
| record_format | Article |
| series | BBR: Brazilian Business Review |
| spelling | doaj-art-c858df3955e24f2594dcaa3a343efb7e2025-02-06T23:39:34ZengFUCAPE Business SchoolBBR: Brazilian Business Review1807-734X2023-01-01202133156http://dx.doi.org/10.15728/bbr.2023.20.2.2.ptDoes Economic Policy Uncertainty Affect M&A Operations? Evidence from the Brazilian MarketAlexandre Teixeira Norberto BatistaWagner Moura LamounierPoueri do Carmo MárioThe objective of this work was to investigate the effect of Economic Policy Uncertainty on Mergers and Acquisitions operations of listed companies in Brazil. For this purpose, we have run a binomial logistic regression model to verify the impact of Economic Policy Uncertainty on the propensity for Mergers and Acquisitions in the following year. Using a sample of 128 publicly traded non-financial companies, from 2010 to 2018, we identified that Economic Policy Uncertainty reduces the propensity of acquiring firms to engage in Mergers and Acquisitions activities. The alternative metric used as a proxy for uncertainty, the Economic Uncertainty Indicator - Brazil, was not statistically significant. The results are consistent with international evidence. This study proposes a hybrid model that can be used to estimate the propensity for Mergers and Acquisitions in other contexts. Furthermore, it contributes to a series of emerging discussions on factors triggered by economic policy uncertainty that can alter the dynamics of corporate decisions.http://www.redalyc.org/articulo.oa?id=123075339002corporate investmentsreal optionspolitical uncertainty |
| spellingShingle | Alexandre Teixeira Norberto Batista Wagner Moura Lamounier Poueri do Carmo Mário Does Economic Policy Uncertainty Affect M&A Operations? Evidence from the Brazilian Market BBR: Brazilian Business Review corporate investments real options political uncertainty |
| title | Does Economic Policy Uncertainty Affect M&A Operations? Evidence from the Brazilian Market |
| title_full | Does Economic Policy Uncertainty Affect M&A Operations? Evidence from the Brazilian Market |
| title_fullStr | Does Economic Policy Uncertainty Affect M&A Operations? Evidence from the Brazilian Market |
| title_full_unstemmed | Does Economic Policy Uncertainty Affect M&A Operations? Evidence from the Brazilian Market |
| title_short | Does Economic Policy Uncertainty Affect M&A Operations? Evidence from the Brazilian Market |
| title_sort | does economic policy uncertainty affect m a operations evidence from the brazilian market |
| topic | corporate investments real options political uncertainty |
| url | http://www.redalyc.org/articulo.oa?id=123075339002 |
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