The determinants of cross-border mergers and acquisitions in Africa

Abstract: Empirical studies have been undertaken to ascertain the determinants of cross-border mergers and acquisitions in developed nations and select emerging markets. There is a research gap in conducting similar studies to identify the determinants of cross-border mergers and acquisitions into Africa. The aim of this study was to explore the determinants of mergers and acquisitions (M&A) in Africa. The study sought to clarify whether or not the determinants of cross-border M&A in Africa would be consistent with findings in the financial and academic literature. A longitudinal (panel) study was used to determine the volumes of M&A activity against the variables: business regulations, employment regulations, inflation, corruption, gross domestic product (GDP), governance, human development and technological innovation. The findings indicated that there was a significant positive relationship with governance, GDP and innovation to the volume of M&A activity. The study also found a significant negative relationship between corruption, inflation and business regulations to the volume of M&A activity. Human development had a positive non-explanatory influence on M&A activity. The volume of employment regulations did not have a significant negative, explanatory influcne on M&A activity. ..M.Com. (Finance