Market and Technology Access Through Firm Acquisitions: Beyond One Size Fits All
AbstractFirm acquisitions have been shown to serve as a way to gain access to international markets, technological assets, products or other valuable resources of the target firm. Given this heterogeneity of takeover motivations and the skewness of the distribution of the deal value we show whether and how the importance of different takeover motivations changes along the deal value distribution. Based on a comprehensive dataset of 652 European mergers and acquisitions in the period from 1997 to 2003, we use quantile regressions to decompose the deal value at different points of its distribution. Our results indicate that the importance of technological assets is indeed higher for smaller target firms. The findings support the view on small acquisition targets to complement the acquirer?s technology portfolio while larger acquisition targets tend to be used to gain access to international markets. --
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 08-037.
Date of creation: 2008
Date of revision:
Firm acquisitions; technological assets; market access; quantile regression;
Find related papers by JEL classification:
- G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
- L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
- O34 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-08-06 (All new papers)
- NEP-BEC-2008-08-06 (Business Economics)
- NEP-COM-2008-08-06 (Industrial Competition)
- NEP-MIC-2008-08-06 (Microeconomics)
- NEP-TID-2008-08-06 (Technology & Industrial Dynamics)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Henkel, Joachim & Rønde, Thomas & Wagner, Marcus, 2010. "And the Winner Is--Acquired: Entrepreneurship as a Contest with Acquisition as the Prize," CEPR Discussion Papers 8147, C.E.P.R. Discussion Papers.
- Richard Fabling & Lynda Sanderson, 2011.
"Foreign acquisition and the performance of New Zealand firms,"
Reserve Bank of New Zealand Discussion Paper Series
DP2011/08, Reserve Bank of New Zealand.
- Richard Fabling & Lynda Sanderson, 2011. "Foreign Acquisition and the Performance of New Zealand Firms," Treasury Working Paper Series 11/06, New Zealand Treasury.
- Joel Stiebale & Michaela Trax, 2011.
"The effects of cross-border M&As on the acquirers' domestic performance: firm-level evidence,"
Canadian Journal of Economics,
Canadian Economics Association, vol. 44(3), pages 957-990, August.
- Joel Stiebale & Michaela Trax, 2010. "The Eff ects of Cross-border M&As on the Acquirers’ Domestic Performance – Firm-level Evidence," Ruhr Economic Papers 0159, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics).
If references are entirely missing, you can add them using this form.