IDEAS home Printed from https://ideas.repec.org/a/bla/obuest/v60y1998i2p143-165.html
   My bibliography  Save this article

When do Firms go in for Growth by Acquisitions?

Author

Listed:
  • Donald A. Hay
  • Guy S. Liu

Abstract

This paper analyses the incidence of acquisitions, and the determinants of expenditure or acquisitions, in a sample of 110 UK quoted companies, 1970–89. Financial variables, especially those related to Jensen's ‘free cash flow’ theory of acquisitions are found to be significant, notably for dominant firms. But there is little support for the inclusion of market structure variables which seek to capture the strategic role of acquisitions as an instrument of competition in oligopolistic markets.

Suggested Citation

  • Donald A. Hay & Guy S. Liu, 1998. "When do Firms go in for Growth by Acquisitions?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 60(2), pages 143-165, May.
    • Handle: RePEc:bla:obuest:v:60:y:1998:i:2:p:143-165
    DOI: 10.1111/1468-0084.00092
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1468-0084.00092
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1468-0084.00092?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Huyghebaert, Nancy & Luypaert, Mathieu, 2010. "Antecedents of growth through mergers and acquisitions: Empirical results from Belgium," Journal of Business Research, Elsevier, vol. 63(4), pages 392-403, April.
    2. Andrew P. Dickerson & Heather D. Gibson & Euclid Tsakalotos, 2003. "Is attack the best form of defence? A competing risks analysis of acquisition activity in the UK," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 27(3), pages 337-357, May.
    3. Gugler, Klaus & Mueller, Dennis C. & Weichselbaumer, Michael, 2012. "The determinants of merger waves: An international perspective," International Journal of Industrial Organization, Elsevier, vol. 30(1), pages 1-15.
    4. Chidambaran, N.K. & Krishnakumar, Dipali & Sethi, Madhvi, 2018. "Cross-border vs. domestic acquisitions: Evidence from India," Journal of Economics and Business, Elsevier, vol. 95(C), pages 3-25.
    5. Ulrich Hege, 2010. "Acquisition Values and Optimal Financial (In)Flexibility," The Review of Financial Studies, Society for Financial Studies, vol. 23(7), pages 2865-2899, July.
    6. Klaus Gugler & Dennis C. Mueller & B. Burçin Yurtoglu, 2006. "The Determinants of Merger Waves," CIG Working Papers SP II 2006-01, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:obuest:v:60:y:1998:i:2:p:143-165. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/sfeixuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.