IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

The discontinuous integration of Western Europe's heterogeneous market for corporate control from 1995 to 2007

Listed author(s):
  • Frey, Rainer
Registered author(s):

    As, in Europe, many institutional reforms have been undertaken to establish an economic union, it can be expected that the relevance of borders has decreased over time. For the EU 15, we investigate the expected integration process of the market for corporate control - an illustrative market for studying integration issues - over the period from 1995 to 2007. Our gravity regressions show that borders lost relevance from 1995 up to the bursting of the new economy bubble. During this period, the transition from the European Economic Community to the European Union at the end of 1993 and the introduction of the euro may have led to accelerated integration. However, thereafter we find no evidence for further progress driven by institutional factors. On the other hand, geographical distance became less relevant for M&As for the entire time span from 1995 to 2007. The continued lack of full integration is also evidenced by heterogeneity inside Europe. This becomes apparent in differing and continuing bilateral border effects. Country pairs with supposedly liberal capital market thinking, such as the Netherlands, Germany and the UK are found to be divided by relatively small barriers. Hence, a still existing lack of integration in Europe may not be a result of missing institutional reforms. In the Poisson estimations, the results depend neither on the choice of the number of observations nor on the log of aggregated transaction value as the dependent variable; however, the use of the levels is inappropriate.

    If 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.

    File URL:
    Download Restriction: no

    Paper provided by Deutsche Bundesbank, Research Centre in its series Discussion Paper Series 1: Economic Studies with number 2010,14.

    in new window

    Date of creation: 2010
    Handle: RePEc:zbw:bubdp1:201014
    Contact details of provider: Postal:
    Postfach 10 06 02, 60006 Frankfurt

    Phone: 0 69 / 95 66 - 0
    Fax: 0 69 / 95 66 30 77
    Web page:

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:zbw:bubdp1:201014. 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: (ZBW - German National Library of Economics)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.