Mergers and acquisitions in Brazil and economic uncertainty shocks

Authors

DOI:

https://doi.org/10.19094/contextus.2022.80660

Keywords:

macroeconomic factors, vector autorregressive, policy uncertainty, granger causality, M&A waves

Abstract

In this paper, we have analyzed the sensitivity of the aggregate volume of Mergers and Acquisitions (M&A) in Brazil to fluctuations (shocks) in the Economic Uncertainty level from 2010 to 2021 under behavioral and neoclassical theoretical foundations on the M&A causes. We estimated a Vector Autoregressive (VAR) model with the volume of M&A announcements, the Brazil Economic Uncertainty Index (IIE-Br), and macroeconomic and market variables. There is evidence that the M&A announcements in Brazil can respond positively to an economic uncertainty shock. Thus, we contribute with empirical evidence to understand the role of macroeconomic factors, including economic uncertainty, in the future conduct of the M&A market.

Author Biographies

Alexandre Teixeira Norberto Batista, Federal University of Minas Gerais (UFMG)

Doctoral Student in Controllership and Accounting from Federal University of Minas Gerais (UFMG)

Wagner Moura Lamounier, Federal University of Minas Gerais (UFMG)

Associate Professor at the Department of Accounting of the Faculty of Economic Sciences (FACE) of the Federal University of Minas Gerais (UFMG).

PhD in Economics from Federal University of Viçosa (UFV).

 

 

 

Poueri do Carmo Mário, Federal University of Minas Gerais (UFMG)

Associate Professor at the Department of Accounting of the Faculty of Economic Sciences (FACE) of the Federal University of Minas Gerais (UFMG)

PhD in Controllership and Accounting from Faculty of Economics, Administration, Accounting and Actuarial Science of the University of São Paulo (FEA/USP)

 

Bruno Pérez Ferreira, Federal University of Minas Gerais (UFMG)

Associate Professor at the Department of Administration of the Faculty of Economic Sciences (FACE) of the Federal University of Minas Gerais (UFMG).

PhD in Business Administration from Federal University of Minas Gerais (UFMG).

 

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Published

2022-10-18

How to Cite

Batista, A. T. N., Lamounier, W. M., Mário, P. do C., & Ferreira, B. P. (2022). Mergers and acquisitions in Brazil and economic uncertainty shocks. Contextus - Contemporary Journal of Economics and Management, 20, 295–307. https://doi.org/10.19094/contextus.2022.80660

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Vol. 20: jan/dec 2022

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