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dc.contributor.authorBjorvatn, Kjetil
dc.date.accessioned2006-06-27T10:35:11Z
dc.date.available2006-06-27T10:35:11Z
dc.date.issued2003-08
dc.identifier.issn1503-2140
dc.identifier.urihttp://hdl.handle.net/11250/165614
dc.description.abstractThe 1990s was a decade of increased economic integration. The decade also witnessed a sharp increase in cross-border mergers and acquisitions (M&As). From a theoretical perspective, the increase in M&As in more integrated economies is rather puzzling. It is a well-established result that due to the “business stealing effect”, mergers in integrated markets are not likely to take place. A reasonable conjecture would therefore be that closer integration of markets would reduce the profitability of mergers. The present paper demonstrates that economic integration may trigger cross-border acquisitions by reducing the business stealing effect and by reducing the acquisition price of the target firm. The paper thus provides explanations to the rather puzzling observation of increased cross-border mergers in more integrated economies. JEL classification: F15, F21, F23, L12, L13 Keywords: Economic integration; Mergers and acquisitions; Trade; Foreign direct investment;en
dc.format.extent1689183 bytes
dc.format.mimetypeapplication/pdf
dc.language.isoengen
dc.publisherSNFen
dc.relation.ispartofseriesWorking paperen
dc.relation.ispartofseries2003:30en
dc.subjecteconomic integrationen
dc.subjectmergers and acquisitionsen
dc.subjecttradeen
dc.subjectforeign direct investmenten
dc.titleEconomic integration and the profitability of cross-border mergers and acquisitionsen
dc.typeWorking paperen


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