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- Title
Evidence of Fire-Sale M&A in European Transition Countries.
- Authors
Višić, Josipa
- 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.
- Subjects
INVESTMENTS; CROSS border transactions; GROSS domestic product; BUSINESS enterprises; FINANCE; BUSINESS models
- Publication
Managing Global Transitions: International Research Journal, 2012, Vol 10, Issue 3, p325
- ISSN
1581-6311
- Publication type
Article