Cross-border mergers and acquisitions (CBMAs) have become a key mode of international expansion for firms from emerging economies. While prior studies emphasize target-country determinants, limited attention has been given to the role of home-country macroeconomic conditions. This study examines the macroeconomic transmission channels influencing outbound CBMA activity in BRICS economies, with a focus on India and China. Using panel data from 2000–2020, the analysis employs panel ARDL (Pooled Mean Group) and country-specific ARDL models to evaluate growth, financial, and cost-related factors. The results reveal significant cross-country heterogeneity. In India, CBMA activity is driven primarily by financial factors such as domestic savings and foreign direct investment, while inflation exerts a negative effect. In contrast, China’s CBMA activity is more strongly influenced by economic growth and cost conditions. Exchange rate effects are significant in both countries but differ in magnitude and direction. The Global Financial Crisis significantly reduced CBMA activity in India but had no significant impact in China. The findings highlight the importance of country-specific macroeconomic structures in shaping international expansion strategies.

Keywords

Cross-Border Mergers and Acquisitions; Macroeconomic Transmission Channels; BRICS Economies; India–China Comparison; Emerging Markets.