International Journal For Multidisciplinary Research

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A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

Call for Paper Volume 6 Issue 6 November-December 2024 Submit your research before last 3 days of December to publish your research paper in the issue of November-December.

The Influence of Macroeconomic Factors on Mergers and Acquisitions and Stock Market Performance

Author(s) Naina Lakra
Country India
Abstract This study examines the impact of macroeconomic factors on mergers and acquisitions (M&A) and stock market performance. The research highlights how key variables such as GDP growth, interest rates, inflation, and unemployment influence corporate strategies and investor behavior, shaping economic landscapes and market dynamics. Strong GDP growth is found to correlate with increased M&A activity and stock market bullishness due to heightened corporate profitability and investor optimism. Conversely, recessions or slow GDP growth reduce M&A activity and market confidence. Lower interest rates stimulate M&A by reducing borrowing costs, while higher rates deter acquisitions and depress stock prices. Inflation impacts corporate profitability and investor sentiment, with high inflation driving companies toward acquisitions for economies of scale, but prolonged inflation erodes profit margins and market appeal. Unemployment rates indirectly affect M&A through consumer spending and business confidence, with low unemployment fostering M&A and high unemployment dampening investor sentiment and market stability. The study underscores the importance of understanding these macroeconomic interplays for policymakers, businesses, and investors navigating global economic uncertainties and advancements. Future research should focus on technological, geopolitical, and environmental factors further influencing these dynamics.
Keywords Macroeconomics, Mergers and Acquisitions, Stock Market
Field Mathematics > Economy / Commerce
Published In Volume 6, Issue 4, July-August 2024
Published On 2024-08-31
Cite This The Influence of Macroeconomic Factors on Mergers and Acquisitions and Stock Market Performance - Naina Lakra - IJFMR Volume 6, Issue 4, July-August 2024. DOI 10.36948/ijfmr.2024.v06i04.25615
DOI https://doi.org/10.36948/ijfmr.2024.v06i04.25615
Short DOI https://doi.org/gt9hd7

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