Cross-Border Mergers & Acquisitions: The Facts as a Guide for International Economics
Using a detailed and large data set on cross-border merger and acquisitions we discuss the relationship between theory and observed empirical characteristics:(i) most FDI is in the form of M&As, (ii) firms engaged in M&As seem to be ‘market-seeking’, (iii) M&As come in waves (the most recent wave is still unfolding), (iv) economic integration (international deregulation) stimulated M&As, (v) the size of and inequality between M&As grows over time.Our contention in this chapter is that these stylized facts drive and should drive recent theoretical contributions in the field of international economics that try to understand cross-border mergers and acquisitions. Although some models (notably Neary, 2003) explain a number of the characteristics, a full-fledged model of cross-border M&As that, at least in principle, can deal with all the characteristics is still lacking.
|Date of creation:||2006|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +49 (89) 9224-0
Fax: +49 (89) 985369
Web page: http://www.cesifo.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- J. Peter Neary, 2000. "Monopolistic competition and international trade theory," Working Papers 200025, School of Economics, University College Dublin.
- Steven Brakman & Harry Garretsen & Charles van Marrewijk, 2006. "Comparative advantage, cross-border mergers and merger waves: International economics meets industrial organization," CESifo Forum, Ifo Institute for Economic Research at the University of Munich, vol. 7(1), pages 22-26, 04.
- Neary, J Peter, 2006.
"Trade Costs and Foreign Direct Investment,"
CEPR Discussion Papers
5933, C.E.P.R. Discussion Papers.
- Edward E. Leamer & James Levinsohn, 1994.
"International Trade Theory: The Evidence,"
NBER Working Papers
4940, National Bureau of Economic Research, Inc.
- Andrew B. Bernard & Jonathan Eaton & J. Bradford Jenson & Samuel Kortum, 2000.
"Plants and Productivity in International Trade,"
NBER Working Papers
7688, National Bureau of Economic Research, Inc.
- Andrew B. Bernard & Jonathan Eaton & J. Bradford Jensen & Samuel Kortum, 2000. "Plants and Productivity in International Trade," Boston University - Institute for Economic Development 105, Boston University, Institute for Economic Development.
- Andrew B Bernard & Jonathan Eaton & J. Bradford Jensen & Samuel Kortum, 2000. "Plants and productivity in international trade," Working Papers 00-08, Center for Economic Studies, U.S. Census Bureau.
- Gugler, Klaus & Mueller, Dennis C. & Yurtoglu, B. Burcin & Zulehner, Christine, 2003.
"The effects of mergers: an international comparison,"
International Journal of Industrial Organization,
Elsevier, vol. 21(5), pages 625-653, May.
- Klaus Gugler & Dennis C. Mueller & B. Burcin Yurtoglu & Christine Zulehner, 2001. "The Effects of Mergers: An International Comparison," CIG Working Papers FS IV 01-21, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
- Neary, J. Peter, 2004.
"Cross-Border Mergers as Instruments of Comparative Advantage,"
Center for European, Governance and Economic Development Research Discussion Papers
34, University of Goettingen, Department of Economics.
- J. Peter Neary, 2007. "Cross-Border Mergers as Instruments of Comparative Advantage," Review of Economic Studies, Oxford University Press, vol. 74(4), pages 1229-1257.
- J. Peter Neary, 2004. "Cross-border mergers as instruments of comparative advantage," Working Papers 200404, School of Economics, University College Dublin.
- Neary, J Peter, 2004. "Cross-Border Mergers as Instruments of Comparative Advantage," CEPR Discussion Papers 4325, C.E.P.R. Discussion Papers.
- Roll, Richard, 1986. "The Hubris Hypothesis of Corporate Takeovers," The Journal of Business, University of Chicago Press, vol. 59(2), pages 197-216, April.
- J. Peter Neary, 2002.
"Globalisation and market structure,"
200220, School of Economics, University College Dublin.
- Sven-Olof Fridolfsson & Johan Stennek, 2005.
"Why Mergers Reduce Profits And Raise Share Prices-A Theory Of Preemptive Mergers,"
Journal of the European Economic Association,
MIT Press, vol. 3(5), pages 1083-1104, 09.
- FRIDOLFSSON, Sven-Olof & STENNEK, Johan, 1999. "Why mergers reduce profits, and raise share prices: A theory of preemptive mergers," Working Papers 1999018, University of Antwerp, Faculty of Applied Economics.
- Sven-Olof Fridolfsson & Johan Stennek, 2001. "Why Mergers Reduce Profits and Raise Share Prices: A Theory of Preemptive Mergers," CIG Working Papers FS IV 01-26, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
- Steven Brakman & Harry Garretsen & Charles van Marrewijk, 2007.
"Cross-border Mergers and Acquisitions: On Revealed Comparative Advantage And Merger Waves,"
Tinbergen Institute Discussion Papers
08-013/2, Tinbergen Institute.
- Steven Brakman & Harry Garretsen & Charles van Marrewijk, 2005. "Cross-Border Mergers and Acquisitions: On Revealed Comparative Advantage and Merger Waves," CESifo Working Paper Series 1602, CESifo Group Munich.
- Gregor Andrade & Mark Mitchell & Erik Stafford, 2001. "New Evidence and Perspectives on Mergers," Journal of Economic Perspectives, American Economic Association, vol. 15(2), pages 103-120, Spring.
- van Marrewijk, Charles, 2006. "International Economics: Theory, application, and policy," OUP Catalogue, Oxford University Press, number 9780199280988, July.
When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_1823. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Julio Saavedra)
If references are entirely missing, you can add them using this form.