Determinants of Growth through Mergers and Acquisitions: Empirical Results from Belgium

Mathieu Luypaert () and Nancy Huyghebaert ()
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Mathieu Luypaert: Hogeschool-Universiteit Brussel (HUB), Belgium
Nancy Huyghebaert: Katholieke Universiteit Leuven, Belgium

No 2008/06, Working Papers from Hogeschool-Universiteit Brussel, Faculteit Economie en Management

Abstract: This paper empirically investigates the determinants of growth through mergers and acquisitions (M&As) in a typical Continental European country, Belgium. By analyzing firm characteristics, industry and aggregate market variables, we are able to determine what motives are important in the decision to acquire. Our results show that intangible capital and firm size significantly positively affect the M&A decision whereas ownership concentration and bank loans have a negative impact. Furthermore, M&As are significantly more likely in industries where incumbents are operating at a relatively low scale, that are less concentrated, and that were recently deregulated.

Keywords: mergers and acquisitions; growth; motives; ownership; financing (search for similar items in EconPapers)
JEL-codes: G15 G32 G34 (search for similar items in EconPapers)
Pages: 47 pages
Date: 2008-02-25, Revised 2009-06-11
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Citations: View citations in EconPapers (2)

Published in Journal of Business Research (2010), vol. 63(4), pp. 392-403

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http://dx.doi.org/10.1016/j.jbusres.2009.06.003 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:hub:wpecon:200806

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