The Impact of European Integration on the Nineties’ Wave of Mergers and Acquisitions |
Anne-France Delannay, Pierre-Guillaume Méon, |
Université Robert Schuman University of Brussels |
Copyright ©2006 The Journal of Economic Integration |
ABSTRACT |
|
The present paper applies a gravity model with fixed country effects to M&A flows on a sample of 1215 pairs of countries over the 1998-2001 period, to test the impact of European integration. That model, which had to our knowledge not been applied to M&A flows so far, allows us to observe that the participation of two countries in the process of European integration is associated with a smaller negative impact of distance on those countries’ bilateral M&A flows. We observe no such effect for the EMU however. JEL Classifications: F15, F23, G34 |
Keywords:
Mergers and acquisitions | multinational firms | gravity models | European integration | EMU
|
|
|
REFERENCE |
1. |
Ahearne A. G., W.L. Griever and F.E. Warnock (2004) “Information costs and home bias: an analysis of US holdings of foreign equities”. Journal of International Economics. 62, 313-336. |
|
|
2. |
Ashcroft B., B. Coppins, and R. Raeside (1994) “The regional dimension of takeover activity in the united kingdom”. Scottish Journal of Political Economy. 41, 163-175. |
|
|
|
|
|
|