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Who Acquires Whom? The Role of Geographical Proximity and Industrial Relatedness in Dutch Domestic M&As between 2002 and 2008

Ellwanger, Nils and Boschma, Ron LU (2015) In Tijdschrift Voor Economische en Sociale Geografie 106(5). p.608-624
Abstract
In economic geography, geographical proximity has been identified as a key driver of M&A activity. In this context, little attention has yet been drawn to the effect of industrial relatedness, which refers to the similarity and complementarity of business activities. We examine 1,855 domestic M&A deals announced between 2002 and 2008 in the Netherlands, and we assess the extent to which geographical proximity and industrial relatedness affect M&A partnering. Our study shows that geographical proximity drives domestic M&A deals, even at very detailed spatial scales like the municipality level. We also found evidence that companies that share the same or complementary industries are more likely to engage in an M&A deal.... (More)
In economic geography, geographical proximity has been identified as a key driver of M&A activity. In this context, little attention has yet been drawn to the effect of industrial relatedness, which refers to the similarity and complementarity of business activities. We examine 1,855 domestic M&A deals announced between 2002 and 2008 in the Netherlands, and we assess the extent to which geographical proximity and industrial relatedness affect M&A partnering. Our study shows that geographical proximity drives domestic M&A deals, even at very detailed spatial scales like the municipality level. We also found evidence that companies that share the same or complementary industries are more likely to engage in an M&A deal. Logistic regressions show that the effect of industrial relatedness is stronger than the effect of geographical proximity and that the effect of geographical proximity is stronger in unrelated than related target selection. (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
Mergers and acquisitions, the Netherlands, geographical proximity, home, bias, industrial relatedness
in
Tijdschrift Voor Economische en Sociale Geografie
volume
106
issue
5
pages
608 - 624
publisher
Wiley-Blackwell
external identifiers
  • wos:000368331100007
  • scopus:84958847254
ISSN
0040-747X
DOI
10.1111/tesg.12141
language
English
LU publication?
yes
id
7c3a9c48-c8ff-4043-a5be-2c1801cc2c3c (old id 8754472)
date added to LUP
2016-02-23 08:16:47
date last changed
2017-06-18 04:15:27
@article{7c3a9c48-c8ff-4043-a5be-2c1801cc2c3c,
  abstract     = {In economic geography, geographical proximity has been identified as a key driver of M&A activity. In this context, little attention has yet been drawn to the effect of industrial relatedness, which refers to the similarity and complementarity of business activities. We examine 1,855 domestic M&A deals announced between 2002 and 2008 in the Netherlands, and we assess the extent to which geographical proximity and industrial relatedness affect M&A partnering. Our study shows that geographical proximity drives domestic M&A deals, even at very detailed spatial scales like the municipality level. We also found evidence that companies that share the same or complementary industries are more likely to engage in an M&A deal. Logistic regressions show that the effect of industrial relatedness is stronger than the effect of geographical proximity and that the effect of geographical proximity is stronger in unrelated than related target selection.},
  author       = {Ellwanger, Nils and Boschma, Ron},
  issn         = {0040-747X},
  keyword      = {Mergers and acquisitions,the Netherlands,geographical proximity,home,bias,industrial relatedness},
  language     = {eng},
  number       = {5},
  pages        = {608--624},
  publisher    = {Wiley-Blackwell},
  series       = {Tijdschrift Voor Economische en Sociale Geografie},
  title        = {Who Acquires Whom? The Role of Geographical Proximity and Industrial Relatedness in Dutch Domestic M&As between 2002 and 2008},
  url          = {http://dx.doi.org/10.1111/tesg.12141},
  volume       = {106},
  year         = {2015},
}