Varieties of Capitalism, Varieties of Markets: Mergers and Acquisitions in Japan, Germany, France, the UK and USA
This paper compares the characteristics of M&A in 1991-2005 across five countries: Japan, France, Germany, the UK and USA. We ask what factors explain the growth of M&A markets across these countries, and what similarities and differences exist in the ways the M&A market operates. We find that the growth of M&A reflects a rather similar combination of sectoral, international, and financial factors. However, despite some convergence toward increasing levels, we find important differences in the characteristics of M&A transactions that reflect institutional differences found within different national 'varieties of capitalism'. We find systematic differences between what Hall and Soskice (2001) call liberal market economies (UK and USA) and coordinated market economies (Japan, France, and Germany) across a wide range of in deal characteristics: takeover bids, the size of stakes purchased, the prior stakes held, the use of private negotiation, degree of hostility, and takeover premium. In line with theories of the social embeddedness of markets (Granovetter 1985), we find that in countries with 'coordinated' market economies, M&A reflects greater 'coordination' of transactions through on going business relations. As such, the market for corporate control does not necessary entail a convergence of national business systems, but a pattern of change influenced by strong continuities.
|Date of creation:||Sep 2007|
|Contact details of provider:|| Postal: 11th floor, Annex, Ministry of Economy, Trade and Industry (METI) 1-3-1, Kasumigaseki Chiyoda-ku, Tokyo, 100-8901|
Web page: http://www.rieti.go.jp/
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.:
- Martynova, M. & Renneboog, L.D.R., 2006.
"Mergers and Acquisitions in Europe,"
2006-6, Tilburg University, Center for Economic Research.
- Henry G. Manne, 1965. "Mergers and the Market for Corporate Control," Journal of Political Economy, University of Chicago Press, vol. 73, pages 351-351.
- Conyon, Martin J. & Girma, Sourafel & Thompson, Steve & Wright, Peter W., 2001. "Do hostile mergers destroy jobs?," Journal of Economic Behavior & Organization, Elsevier, vol. 45(4), pages 427-440, August.
- MING DONG & David Hirshleifer & SCOTT RICHARSON & Siew Hong Teoh, 2004.
"Does Investor Misvaluation Drive the Takeover Market?,"
- Ming Dong & David Hirshleifer & Scott Richardson & Siew Hong Teoh, 2006. "Does Investor Misvaluation Drive the Takeover Market?," Journal of Finance, American Finance Association, vol. 61(2), pages 725-762, 04.
- Bengt Holmstrom & Steven N. Kaplan, 2001. "Corporate Governance and Merger Activity in the U.S.: Making Sense of the 1980s and 1990s," NBER Working Papers 8220, National Bureau of Economic Research, Inc.
- Boyan Jovanovic & Peter L. Rousseau, 2002.
"The Q-Theory of Mergers,"
American Economic Review,
American Economic Association, vol. 92(2), pages 198-204, May.
- Beckert, Jens, 2007. "Die soziale Ordnung von Märkten," MPIfG Discussion Paper 07/6, Max Planck Institute for the Study of Societies.
- Rossi, Stefano & Volpin, Paolo F., 2004.
"Cross-country determinants of mergers and acquisitions,"
Journal of Financial Economics,
Elsevier, vol. 74(2), pages 277-304, November.
- Rossi, Stefano & Volpin, Paolo, 2003. "Cross-Country Determinants of Mergers and Acquisitions," CEPR Discussion Papers 3889, C.E.P.R. Discussion Papers.
- Hancke, Bob, 2002. "Large Firms and Institutional Change: Industrial Renewal and Economic Restructuring in France," OUP Catalogue, Oxford University Press, number 9780199252053, December.
- Andrei Shleifer & Lawrence H. Summers, 1988.
"Breach of Trust in Hostile Takeovers,"
in: Corporate Takeovers: Causes and Consequences, pages 33-68
National Bureau of Economic Research, Inc.
- Höpner, Martin & Krempel, Lothar, 2003. "The politics of the German company network," MPIfG Working Paper 03/9, Max Planck Institute for the Study of Societies.
- Sigurt Vitols, 2005. "Changes in Germany's Bank-Based Financial System: implications for corporate governance," Corporate Governance: An International Review, Wiley Blackwell, vol. 13(3), pages 386-396, 05.
- Mari Sako & Gregory Jackson, 2006. "Strategy Meets Institutions: The Transformation of Management-Labor Relations at Deutsche Telekom and Ntt," ILR Review, Cornell University, ILR School, vol. 59(3), pages 347-366, April.
- Yasuhiro Arikawa & Hideaki Miyajima, 2005. "Relationship Banking and Debt Choice: evidence from Japan," Corporate Governance: An International Review, Wiley Blackwell, vol. 13(3), pages 408-418, 05.
- Gregory Jackson, 2005. "Stakeholders under Pressure: corporate governance and labour management in Germany and Japan," Corporate Governance: An International Review, Wiley Blackwell, vol. 13(3), pages 419-428, 05.
- Sylvie Cieply, 2001. "Bridging Capital Gaps To Promote Innovation In France," Industry and Innovation, Taylor & Francis Journals, vol. 8(2), pages 159-178.
- Conyon, Martin J. & Girma, Sourafel & Thompson, Steve & Wright, Peter W., 2002. "The impact of mergers and acquisitions on company employment in the United Kingdom," European Economic Review, Elsevier, vol. 46(1), pages 31-49, January.
- Marco Pagano & Paolo Volpin, 1999.
"The Political Economy of Corporate Governance,"
CSEF Working Papers
29, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy, revised 01 Jul 2005.
- Marc Goergen, 2005.
"Corporate Governance Convergence: Evidence From Takeover Regulation Reforms in Europe,"
Oxford Review of Economic Policy,
Oxford University Press, vol. 21(2), pages 243-268, Summer.
- Goergen, M. & Martynova, M. & Renneboog, L.D.R., 2005. "Corporate Governance Convergence : Evidence from Takeover Regulation Reforms in Europe," Discussion Paper 2005-017, Tilburg University, Tilburg Law and Economic Center.
- Goergen, M. & Martynova, M. & Renneboog, L.D.R., 2005. "Corporate Governance Convergence : Evidence from Takeover Regulation Reforms in Europe," Discussion Paper 2005-63, Tilburg University, Center for Economic Research.
- Shleifer, Andrei & Vishny, Robert W., 2003.
"Stock market driven acquisitions,"
Journal of Financial Economics,
Elsevier, vol. 70(3), pages 295-311, December.
- Hall, Peter A. & Soskice, David (ed.), 2001. "Varieties of Capitalism: The Institutional Foundations of Comparative Advantage," OUP Catalogue, Oxford University Press, number 9780199247752, December.
- Takeo Hoshi & Anil Kashyap, 2004. "Corporate Financing and Governance in Japan: The Road to the Future," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262582481.
- Henry G. Manne, 1965. "Mergers and the Market for Corporate Control," Journal of Political Economy, University of Chicago Press, vol. 73, pages 110-110.
When requesting a correction, please mention this item's handle: RePEc:eti:dpaper:07054. 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: (NUKATANI Sorahiko)
If references are entirely missing, you can add them using this form.