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Is attack the best form of defence? A competing risks analysis of acquisition activity in the UK Author info | Abstract | Publisher info | Download info | Related research | Statistics Andrew P. Dickerson
Heather D. Gibson
Euclid Tsakalotos
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The primary purpose of this paper is to investigate whether companies can use acquisition as a strategy to reduce their likelihood of take-over. The determinants of making an acquisition and being taken over are modelled for the first time within a competing risks framework using two large samples of UK manufacturing companies which together cover most of the post-World War II period up to 1990. Our results indicate that, ceteris paribus, companies which make acquisitions can significantly reduce their conditional probability of being taken over by around one-third, largely through the impact that acquisition has on corporate size. In this sense, attack, through acquisition, is the best form of defence against take-over. Copyright 2003, Oxford University Press.
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Article provided by Oxford University Press in its journal Cambridge Journal of Economics .
Volume (Year): 27 (2003)
Issue (Month): 3 (May)
Pages: 337-357
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Handle: RePEc:oup:cambje:v:27:y:2003:i:3:p:337-357Contact details of provider: Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK Fax: 01865 267 985 Email: Web page: http://www.cje.oupjournals.org/
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