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Merger and Acquisition Activity as Driver of Spatial Clustering: The Spatial Evolution of the Dutch Banking Industry, 1850-1993

Boschma, Ron LU and Hartog, Matte (2014) In Economic Geography 90(3). p.247-266
Abstract
This article investigates the extent to which merger and acquisition (M&A) activity contributed to the spatial clustering of the Dutch banking industry in Amsterdam. This analysis is based on a unique database of all banks in the Netherlands that existed in the period 1850-1993. We found that spatial clustering of the Dutch banking industry was not driven by the fact that banks performed better in the Amsterdam region: being located in Amsterdam decreased rather than increased the survival chances of banks. However, banks in Amsterdam were disproportionally active in acquiring other banks outside Amsterdam. Experience in M&As accumulated mainly in the Amsterdam region, which in turn had a positive impact on the survival chances of... (More)
This article investigates the extent to which merger and acquisition (M&A) activity contributed to the spatial clustering of the Dutch banking industry in Amsterdam. This analysis is based on a unique database of all banks in the Netherlands that existed in the period 1850-1993. We found that spatial clustering of the Dutch banking industry was not driven by the fact that banks performed better in the Amsterdam region: being located in Amsterdam decreased rather than increased the survival chances of banks. However, banks in Amsterdam were disproportionally active in acquiring other banks outside Amsterdam. Experience in M&As accumulated mainly in the Amsterdam region, which in turn had a positive impact on the survival chances of banks located there. Our findings suggest that M& A activity was a driving force behind the spatial clustering of the Dutch banking industry between 1850 and 1993. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
industrial dynamics, cluster, mergers and acquisitions, banking sector, evolutionary economic geography
in
Economic Geography
volume
90
issue
3
pages
247 - 266
publisher
Economic Geography
external identifiers
  • wos:000340600500001
  • scopus:84904336364
ISSN
0013-0095
DOI
10.1111/ecge.12054
language
English
LU publication?
yes
id
ef8ba156-fe9d-4f27-8653-4371418331ba (old id 4655953)
date added to LUP
2014-09-24 11:19:49
date last changed
2017-11-12 03:03:51
@article{ef8ba156-fe9d-4f27-8653-4371418331ba,
  abstract     = {This article investigates the extent to which merger and acquisition (M&A) activity contributed to the spatial clustering of the Dutch banking industry in Amsterdam. This analysis is based on a unique database of all banks in the Netherlands that existed in the period 1850-1993. We found that spatial clustering of the Dutch banking industry was not driven by the fact that banks performed better in the Amsterdam region: being located in Amsterdam decreased rather than increased the survival chances of banks. However, banks in Amsterdam were disproportionally active in acquiring other banks outside Amsterdam. Experience in M&As accumulated mainly in the Amsterdam region, which in turn had a positive impact on the survival chances of banks located there. Our findings suggest that M& A activity was a driving force behind the spatial clustering of the Dutch banking industry between 1850 and 1993.},
  author       = {Boschma, Ron and Hartog, Matte},
  issn         = {0013-0095},
  keyword      = {industrial dynamics,cluster,mergers and acquisitions,banking sector,evolutionary economic geography},
  language     = {eng},
  number       = {3},
  pages        = {247--266},
  publisher    = {Economic Geography},
  series       = {Economic Geography},
  title        = {Merger and Acquisition Activity as Driver of Spatial Clustering: The Spatial Evolution of the Dutch Banking Industry, 1850-1993},
  url          = {http://dx.doi.org/10.1111/ecge.12054},
  volume       = {90},
  year         = {2014},
}