Work detail

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.

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