Cross-border Mergers and Acquisitions: On Revealed Comparative Advantage And Merger Waves

Arbeitspapier

By combining two large data sets (on international trade flows and cross-border mergers and acquisitions – M&As), we test two implications of Neary’s (2003, 2007) general oligopolistic equilibrium (GOLE) model (incorporating strategic interaction between firms in a general equilibrium setting). In terms of economic importance, the dominant merger wave variable is a positive global-all effect, indicating that M&A waves are an economy-wide, global phenomenon. Country-specific merger wave variables are of secundary importance. In accordance with the bilateral GOLE model as specified by Neary, we find strong evidence that acquiring firms operate in strong sectors. However, we also find (less pronounced) evidence that target firms are active in strong, not weak sectors, which we label the ‘target paradox’. We show how a multi-country extension of the GOLE model that allows for firm heterogeneity can explain this target paradox.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Tinbergen Institute Discussion Paper ; No. 08-013/2

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Trade: General ; Models of Trade with Imperfect Competition and Scale Economies; Fragmentation ; Oligopoly and Other Imperfect Markets
• Thema: Comparative Advantage ; Cross-border Mergers and Acquisitions ; Merger Waves ; General Oligopolistic Equilibrium Trade Model ; Multinationales Unternehmen ; Fusion ; Übernahme ; Komparativer Vorteil ; Oligopol ; Allgemeines Gleichgewicht ; Schätzung ; Welt

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Brakman, Steven ; Garretsen, Harry ; van Marrewijk, Charles
• Ereignis: Veröffentlichung
• (wer): Tinbergen Institute
• (wo): Amsterdam and Rotterdam
• (wann): 2007

Weitere Informationen

• Handle: http://hdl.handle.net/10419/86870
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ