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Motives to restructure industries: Finnish evidence of cross‐border and domestic mergers and acquisitions
Author(s) -
Lehto Eero
Publication year - 2006
Publication title -
papers in regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.937
H-Index - 64
eISSN - 1435-5957
pISSN - 1056-8190
DOI - 10.1111/j.1435-5957.2006.00023.x
Subject(s) - restructuring , mergers and acquisitions , business , value (mathematics) , industrial organization , finance , statistics , mathematics
. We estimate a multilogit model for the probabilities that a firm will acquire or become a target in different M&A categories, which are defined according to the location of an acquiring firm with respect to a target. We find that certain firm characteristics of an acquiring firm regarded as indicative of having a high capability of monitoring a target – or internalising the potential synergies of M&A – increase the probability of distant M&As at the expense of close M&As. Factors which ease the monitoring of the target firm’s value increase the probability that such a firm becomes a target located far from an acquiring firm.