An Empirical Study on the Correlation between Business Cycle and M&A

This paper, devoted to analyzing the relationship between the business cycle and M&A in empirical way, shows that the M&A presents cyclical changes with a causal and synchronic relation with the business cycle. The study here also demonstrates that M&A enjoys the faint correlation and synchronization with production index, while significant correlation and synchronization with stock price and interest rate, that is, M&A interacts hot with financial indicators' movement, which provides some guidance for M&A concerned policies.