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Motives to restructure industries: Finnish evidence of cross‐border and domestic mergers and acquisitions

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  • Eero Lehto

Abstract

. We estimate a multilogit model for the probabilities that a firm will acquire or become a target in different M&A categories, which are defined according to the location of an acquiring firm with respect to a target. We find that certain firm characteristics of an acquiring firm regarded as indicative of having a high capability of monitoring a target – or internalising the potential synergies of M&A – increase the probability of distant M&As at the expense of close M&As. Factors which ease the monitoring of the target firm’s value increase the probability that such a firm becomes a target located far from an acquiring firm.

Suggested Citation

  • Eero Lehto, 2006. "Motives to restructure industries: Finnish evidence of cross‐border and domestic mergers and acquisitions," Papers in Regional Science, Wiley Blackwell, vol. 85(1), pages 1-22, March.
    • Handle: RePEc:bla:presci:v:85:y:2006:i:1:p:1-22
    DOI: 10.1111/j.1435-5957.2006.00023.x
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    References listed on IDEAS

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    1. di Giovanni, Julian, 2005. "What drives capital flows? The case of cross-border M&A activity and financial deepening," Journal of International Economics, Elsevier, vol. 65(1), pages 127-149, January.
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    Cited by:

    1. Lehto, Eero & Böckerman, Petri, 2008. "Analysing the employment effects of mergers and acquisitions," Journal of Economic Behavior & Organization, Elsevier, vol. 68(1), pages 112-124, October.
    2. Cosnita-Langlais, Andreea, 2012. "Horizontal market concentration: Theoretical insights from spatial models," Research in Economics, Elsevier, vol. 66(1), pages 22-32.
    3. Lehto, Eero & Böckerman, Petri, 2006. "Enemy of Labour? Analysing the Employment Effects of Mergers and Acquisitions," MPRA Paper 1812, University Library of Munich, Germany.
    4. Jiawei Wu & Yehua Dennis Wei & Wen Chen, 2020. "Spatial proximity, localized assets, and the changing geography of domestic mergers and acquisitions in transitional China," Growth and Change, Wiley Blackwell, vol. 51(3), pages 954-976, September.
    5. Ghufran, Bushra & Breuer, Wolfgang, 2024. "Terrorism, national security, and takeover performance," International Review of Financial Analysis, Elsevier, vol. 96(PB).
    6. Junni, Paulina, 2011. "Knowledge transfer in acquisitions: Fear of exploitation and contamination," Scandinavian Journal of Management, Elsevier, vol. 27(3), pages 307-321, September.

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