Does Geography Play a Role in Domestic Takeovers? Theory and Finnish Micro-level Evidence

Petri Böckerman () and Eero Lehto
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Eero Lehto: Labour Institute for Economic Research

Urban/Regional from University Library of Munich, Germany

Abstract: This paper explores domestic mergers and acquisitions (M&As) from the regional perspective. The Finnish firm-level evidence reveals that geographical closeness matters a lot for M&As within a single country. Thus, a great number of domestic M&As occur within narrowly defined regions. Interestingly, domestic M&As reinforce the core-periphery dimension. The results from matched firm-level data show that the strong ability by an acquiring company to monitor the target (measured by the knowledge embodied in human capital) is able to support M&As that occur across distant locations.

Keywords: mergers; acquisitions; monitoring; agglomeration (search for similar items in EconPapers)
JEL-codes: G34 R12 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2005-05-13
New Economics Papers: this item is included in nep-acc, nep-com, nep-geo and nep-ure
Note: Type of Document - pdf; pages: 33
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https://econwpa.ub.uni-muenchen.de/econ-wp/urb/papers/0505/0505002.pdf (application/pdf)

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Working Paper: Does Geography Play a Role in Domestic Takeovers? Theory and Finnish Micro-level Evidence (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpur:0505002

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