Who acquires whom? The role of geographical proximity and industrial relatedness in Dutch domestic M&As between 2002 and 2008
In economic geography, geographical proximity has been identified as a key driver of M&A activity. In this context, little attention has yet been drawn to the effect of industrial relatedness, which refers to the similarity and complementarity of business activities. We examine 1,855 domestic M&A deals announced between 2002 and 2008 in the Netherlands, and we assess the extent to which geographical proximity and industrial relatedness affect M&A partnering. Our study shows that geographical proximity drives domestic M&A deals, even at very detailed spatial scales like the municipality level. We also found evidence that companies that share the same or complementary industries are more likely to engage in an M&A deal. Logistic regressions show that the effect of industrial relatedness is stronger than the effect of geographical proximity.
|Date of creation:||Oct 2013|
|Date of revision:||Oct 2013|
|Contact details of provider:|| Postal: Secretariaat kamer 635, P.O.Box 80.115, 3508 TC Utrecht|
Web page: http://econ.geo.uu.nl
More information through EDIRC
References listed on IDEAS
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.:
- Maria Chiara Di Guardo & Emanuela Marrocu & Raffaele Paci, 2016.
"The Concurrent Impact of Cultural, Political, and Spatial Distances on International Mergers and Acquisitions,"
The World Economy,
Wiley Blackwell, vol. 39(6), pages 824-852, 06.
- MC. Di Guardo & E. Marrocu & R. Paci, 2013. "The Concurrent Impact of Cultural, Political, and Spatial Distances on International Mergers and Acquisitions," Working Paper CRENoS 201308, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
- Michael H. Grote & Marc Umber, 2006. "Home biased? A spatial analysis of the domestic merging behavior of US firms," Working Paper Series: Finance and Accounting 161, Department of Finance, Goethe University Frankfurt am Main.
- Ron Boschma & Emanuela Marrocu & Raffaele Paci, 2016.
"Symmetric and asymmetric effects of proximities. The case of M&A deals in Italy,"
Journal of Economic Geography,
Oxford University Press, vol. 16(2), pages 505-535.
- Emanuela Marrocu & Ron Boschma & Raffaele Paci, 2014. "Symmetric and asymmetric effects of proximities. The case of M&A deals in Italy," ERSA conference papers ersa14p76, European Regional Science Association.
- Manski, Charles F & Lerman, Steven R, 1977. "The Estimation of Choice Probabilities from Choice Based Samples," Econometrica, Econometric Society, vol. 45(8), pages 1977-88, November.
- Keith Chapman, 2003. "Cross-border mergers/acquisitions: a review and research agenda," Journal of Economic Geography, Oxford University Press, vol. 3(3), pages 309-334, July.
- Jung-Chin Shen & Jeffrey Reuer, 2005. "Adverse Selection in Acquisitions of Small Manufacturing Firms: A Comparison of Private and Public Targets," Small Business Economics, Springer, vol. 24(4), pages 393-407, 05.
- King, Gary & Zeng, Langche, 2001. "Explaining Rare Events in International Relations," International Organization, Cambridge University Press, vol. 55(03), pages 693-715, June.
- Michael Fritsch & Dirk Schilder, 2006.
"Does Venture Capital Investment Really Require Spatial Proximity? An Empirical Investigation,"
Papers on Entrepreneurship, Growth and Public Policy
2006-14, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
- Michael Fritsch & Dirk Schilder, 2008. "Does Venture Capital Investment Really Require Spatial Proximity? An Empirical Investigation," Environment and Planning A, SAGE Publishing, vol. 40(9), pages 2114-2131, September.
- Michael Fritsch & Dirk Schilder, 2008. "Does venture capital investment really require spatial proximity? An empirical investigation," Environment and Planning A, Pion Ltd, London, vol. 40(9), pages 2114-2131, September.
- Fritsch, Michael & Schilder, Dirk, 2006. "Does venture capital investment really require spatial proximity? An empirical investigation," Freiberg Working Papers 2006,07, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
- Joshua D. Coval & Tobias J. Moskowitz, 1999. "Home Bias at Home: Local Equity Preference in Domestic Portfolios," Journal of Finance, American Finance Association, vol. 54(6), pages 2045-2073, December.
- Koen Frenken & Frank Van Oort & Thijs Verburg, 2007. "Related Variety, Unrelated Variety and Regional Economic Growth," Regional Studies, Taylor & Francis Journals, vol. 41(5), pages 685-697.
- Andrés Rodríguez-Pose & Hans-Martin Zademach, 2006. "Industry Dynamics In The German Merger And Acquisitions Market," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 97(3), pages 296-313, 07.
- Levy, David T & Reitzes, James D, 1992. "Anticompetitive Effects of Mergers in Markets with Localized Competition," Journal of Law, Economics and Organization, Oxford University Press, vol. 8(2), pages 427-40, April.
- Kevin Morgan, 2004. "The exaggerated death of geography: learning, proximity and territorial innovation systems," Journal of Economic Geography, Oxford University Press, vol. 4(1), pages 3-21, January.
- Ron Boschma, 2005. "Proximity and Innovation: A Critical Assessment," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 61-74.
- Anju Seth & Kean P Song & Richardson Pettit, 2000. "Synergy, Managerialism or Hubris? An Empirical Examination of Motives for Foreign Acquisitions of U.S. Firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 31(3), pages 387-405, September.
- Frank Neffke & Martin Henning & Ron Boschma, 2011.
"How Do Regions Diversify over Time? Industry Relatedness and the Development of New Growth Paths in Regions,"
Clark University, vol. 87(3), pages 237-265, 07.
- Frank Neffke & Martin Henning & Martin Ron Boschma, 2009. "How do regions diversify over time? Industry relatedness and the development of new growth paths in regions," Papers in Evolutionary Economic Geography (PEEG) 0916, Utrecht University, Section of Economic Geography, revised Oct 2009.
- Huberman, Gur, 2001. "Familiarity Breeds Investment," Review of Financial Studies, Society for Financial Studies, vol. 14(3), pages 659-80.
- Macallister, I. & Johnston, R. J. & Pattie, C. J. & Tunstall, H. & Dorling, D. F. L. & Rossiter, D. J., 2001. "Class Dealignment and the Neighbourhood Effect: Miller Revisited," British Journal of Political Science, Cambridge University Press, vol. 31(01), pages 41-59, January.
- Russell Hillberry & David Hummels, 2002.
"Intra-national Home Bias: Some Explanations,"
NBER Working Papers
9022, National Bureau of Economic Research, Inc.
- Fabian Homberg & Katja Rost & Margit Osterloh, 2009. "Do synergies exist in related acquisitions? A meta-analysis of acquisition studies," Review of Managerial Science, Springer, vol. 3(2), pages 75-116, July.
When requesting a correction, please mention this item's handle: RePEc:egu:wpaper:1319. 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: ()
If references are entirely missing, you can add them using this form.