Analysis of Effects of the European Monetary Union on Merger and Acquisition Activity in Europe
| Author: | Bc. David Přerovský |
|---|---|
| Year: | 2021 - summer |
| Leaders: | Jiří Novák M.Sc., Ph.D., Deloitte Corporate Chair |
| Consultants: | |
| Work type: | Bachelors |
| Language: | English |
| Pages: | 94 |
| Awards and prizes: | |
| Link: | https://ckis.cuni.cz:443/F/?func=direct&doc_number=002448234&local_base=CKS01&format=999 |
| Abstract: | The aim of this thesis is to, firstly, analyze effects of the creation of the European Monetary Union (EMU) on cross-border merger and acquisition activity in Europe, and, secondly, to investigate whether joining the EMU after it had been established results in higher M&A activity. Our research utilizes the difference-in-differences and difference in difference in differences approaches in which we compare aggregate M&A activity in new adopters of the euro to that of a control country, whose aggregate M&A activity had followed a similar trend up until the adoption. These methods allow us to account for country-specific trends in M&A activity and the for the phenomenon of M&A waves. Our results show no evidence that creation of the EMU caused higher M&A activity among the members or higher M&A activity in general. For later joiners, no evidence of higher M&A activity as a result of adopting the euro is found either. |
