Year of Graduation
Determinants of M&A Activity of Post-IPO Firms in Developed and Emerging Capital Markets
Strategic Corporate Finance
Existing literature suggests that one of the possible motives for initial public offerings is M&A deals. This study contributes to the existing literature by examining the determinants of M&A activity of post-IPO acquirers from developed and emerging capital markets, performing the comparative analysis of the influence of the determinants by countries, and identifying new determinants. I use logit models and a sample of 4,323 post-IPO firms from developed (the United Kingdom, France, Germany and Sweden) and emerging (Brazil, Russia, India and China) capital markets, that made 4,097 acquisitions during 2000–2016 period. The results demonstrate that the influence of determinants of M&A activity of post-IPO acquirers differs by countries. Also, the findings indicate that the assets turnover ratio has an ambiguous influence on the likelihood of newly listed firms to become acquirers. The results of this study demonstrate that post-IPO firms that pay income tax expenses and that operate in high-tech sectors are more likely to make acquisitions within three-year period after initial public offerings.