| Tekijä: | Bjorvatn, K |
| Otsikko: | Economic integration and the profitability of cross-border mergers and acquisitions |
| Lehti: | European Economic Review
2004 : DEC VOL. 48:6, p.1211-1226 |
| Asiasana: | Economic integration Mergers MERGERS Trade Foreign investment Direct investment |
| Vapaa asiasana: | FDI |
| Kieli: | eng |
| Tiivistelmä: | This article explores the complex relation between economic integration and the profitability of cross-border mergers. Referring to earlier literature, the reason for the increase in international mergers is found to be quite problematic for the well-known fact that mergers in integrated markets are not likely to be profitable. In the contrast to the solution of closer integration of markets, this article argues that economic integration may activate cross-border acquisitions by reducing the business stealing effect and reservation price of the target firm. |
SCIMA