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

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

No 190, Working Papers from Työn ja talouden tutkimus LABORE, Labour Institute for Economic Research LABORE

Abstract: This study explores domestic inter-regional merger flows. Theoretical considerations based on monitoring are developed. The empirical part of the study is based on the comprehensive public data on domestic mergers and acquisitions that is matched to the micro-level data sources maintained by Statistics Finland in order to obtain several variables that help to characterize the companies involved. The Finnish evidence reveals that geographical closeness matters a great deal for inter-regional merger flows. This means that a great number of domestic mergers occur within narrowly defined regions. Domestic merger flows substantially reinforce the coreperiphery dimension. The most important finding from matched data is that the strong ability by an acquiring company to monitor the target (measured by the knowledge embodied in human capital) is able to support mergers that occur across distant locations, other things being equal. Geographical closeness and proximity across industries are not related, based on the Finnish evidence.

Keywords: mergers; acquisitions; monitoring; agglomeration (search for similar items in EconPapers)
JEL-codes: G34 R12 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2003-10-02
References: Add references at CitEc
Citations:

Downloads: (external link)
https://labore.fi/wp-content/uploads/2003/10/Tyopapereita-190.pdf First version, 2003 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pst:wpaper:190

Access Statistics for this paper

More papers in Working Papers from Työn ja talouden tutkimus LABORE, Labour Institute for Economic Research LABORE Contact information at EDIRC.
Bibliographic data for series maintained by Aila Mustonen ().