IDEAS home Printed from https://ideas.repec.org/a/taf/regstd/v49y2015i8p1407-1422.html
   My bibliography  Save this article

The Euro and its Impact on the Number, Size, Performance and Regional Spread of European Mergers and Acquisitions

Author

Listed:
  • Killian J. McCarthy
  • Wilfred Dolfsma

Abstract

M c C arthy K. J. and D olfsma W. The euro and its impact on the number, size, performance and regional spread of European mergers and acquisitions, Regional Studies . The macroeconomic effects of the euro have been extensively studied. The literature has, however, paid significantly less attention to the microeconomic consequences and few authors have considered if and how the euro has impacted firm-level decision-making. This paper explores if, how and in what way the euro has impacted one firm-level decision: whether to merge with or acquire another firm. This paper builds a sample of 19 362 acquisitions, announced in the period 1990-2014. It shows that the euro has dramatically increased the number, size and performance of European mergers and acquisitions. Importantly, it also notes that the euro has altered the geographic spread of European acquisitions. The paper reports that since the introduction of the euro, acquirers have made increasingly distant acquisitions and have preferred targets in peripheral regions to those in the core. The results also hint at the suggestion that the euro may have led acquirers to prefer Eurozone to non-Eurozone targets. From a policy perspective, it is concluded, therefore, that the euro has significantly impacted firm behaviour and has contributed, in a positive sense, to regional integration.

Suggested Citation

  • Killian J. McCarthy & Wilfred Dolfsma, 2015. "The Euro and its Impact on the Number, Size, Performance and Regional Spread of European Mergers and Acquisitions," Regional Studies, Taylor & Francis Journals, vol. 49(8), pages 1407-1422, August.
    • Handle: RePEc:taf:regstd:v:49:y:2015:i:8:p:1407-1422
    DOI: 10.1080/00343404.2015.1007936
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00343404.2015.1007936
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00343404.2015.1007936?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Romain Duval & Jørgen Elmeskov, 2005. "The Effects of EMU on Structural Reforms in Labour and Product Markets," OECD Economics Department Working Papers 438, OECD Publishing.
    2. Berger, Helge & Nitsch, Volker, 2008. "Zooming out: The trade effect of the euro in historical perspective," Journal of International Money and Finance, Elsevier, vol. 27(8), pages 1244-1260, December.
    3. Inês Cabral & Frank Dierick & Jukka Vesala, 2002. "Banking integration in the euro area," Occasional Paper Series 06, European Central Bank.
    4. Flam, Harry & Nordström, Håkan, 2006. "Euro Effects on the Intensive and Extensive Margins of Trade," Seminar Papers 750, Stockholm University, Institute for International Economic Studies.
    5. Vesala, Jukka & Cabral, Inês & Dierick, Frank, 2002. "Banking integration in the euro area," Occasional Paper Series 6, European Central Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Viktoriya Gonchar & Oleksandr Kalinin & Olena Khadzhynova & Killian J. McCarthy, 2022. "False Friends? On the Effect of Bureaucracy, Informality, Corruption and Conflict in Ukraine on Foreign and Domestic Acquisitions," JRFM, MDPI, vol. 15(4), pages 1-14, April.
    2. Jiawei Wu & Yehua Dennis Wei & Wen Chen, 2020. "Spatial proximity, localized assets, and the changing geography of domestic mergers and acquisitions in transitional China," Growth and Change, Wiley Blackwell, vol. 51(3), pages 954-976, September.
    3. Na Qin & Yiping Liu, 2022. "Performance Compensation Commitment in Mergers and Acquisitions," Sustainability, MDPI, vol. 14(23), pages 1-14, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. De Ãvila, Diego Romero, 2003. "Finance and growth in the EU: new evidence from the liberalisation and harmonisation of the banking industry," Working Paper Series 266, European Central Bank.
    2. Glick, Reuven & Rose, Andrew K., 2016. "Currency unions and trade: A post-EMU reassessment," European Economic Review, Elsevier, vol. 87(C), pages 78-91.
    3. Bank for International Settlements, 2010. "Research on global financial stability: the use of BIS international financial statistics," CGFS Papers, Bank for International Settlements, number 40, december.
    4. Anderton, Robert & di Mauro, Filippo & Moneta, Fabio, 2004. "Understanding the impact of the external dimension on the euro area: trade, capital flows and other international macroeconomic linkages," Occasional Paper Series 12, European Central Bank.
    5. Marotta, Giuseppe, 2009. "Structural breaks in the lending interest rate pass-through and the euro," Economic Modelling, Elsevier, vol. 26(1), pages 191-205, January.
    6. Weill, Laurent, 2009. "Convergence in banking efficiency across European countries," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 19(5), pages 818-833, December.
    7. Russo, Daniela & Hart, Terry L. & Malaguti, Maria Chiara & Papathanassiou, Chryssa, 2004. "Governance of securities clearing and settlement systems," Occasional Paper Series 21, European Central Bank.
    8. J.-S. Pentecôte & J.-C. Poutineau & F. Rondeau, 2015. "Trade Integration and Business Cycle Synchronization in the EMU: The Negative Effect of New Trade Flows," Open Economies Review, Springer, vol. 26(1), pages 61-79, February.
    9. Novo-Peteiro, Jos?A., 2009. "Bank mergers in spatially differentiated markets," Journal of Economics and Business, Elsevier, vol. 61(1), pages 90-96.
    10. Vera Eichenauer & Ronald Indergand & Isabel Z. Martínez & Christoph Sax, 2020. "Constructing Daily Economic Sentiment Indices Based on Google Trends," KOF Working papers 20-484, KOF Swiss Economic Institute, ETH Zurich.
    11. Mariam Camarero & Estrella Gómez & Cecilio Tamarit, 2013. "EMU and Trade Revisited: Long-Run Evidence Using Gravity Equations," The World Economy, Wiley Blackwell, vol. 36(9), pages 1146-1164, September.
    12. Hens, Thorsten & Jean-Jacques Herings, P. & Predtetchinskii, Arkadi, 2006. "Limits to arbitrage when market participation is restricted," Journal of Mathematical Economics, Elsevier, vol. 42(4-5), pages 556-564, August.
    13. Wolswijk, Guido & de Haan, Jakob, 2005. "Government debt management in the euro area - recent theoretical developments and changes in practices," Occasional Paper Series 25, European Central Bank.
    14. Garcí­a, Juan Angel, 2003. "An introduction to the ECB's survey of professional forecasters," Occasional Paper Series 8, European Central Bank.
    15. Arribas Ivan & Perez Francisco & Tortosa-Ausina Emili, 2010. "The Determinants of International Financial Integration Revisited: The Role of Networks and Geographic Neutrality," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 15(1), pages 1-55, December.
    16. Kösters, Wim & Paul, Stephan & Stein, Stefan, 2004. "An economic analysis of the EU commission's proposal for a new Consumer Credit Directive: Offering consumers more protection or restricting their options?," RWI Materialien 9, RWI - Leibniz-Institut für Wirtschaftsforschung.
    17. Nao Sudo & Yuki Teranishi, 2008. "Optimal Monetary Policy under Imperfect Financial Integration," IMES Discussion Paper Series 08-E-25, Institute for Monetary and Economic Studies, Bank of Japan.
    18. Campos, Nauro F. & Eichenauer, Vera Z. & Sturm, Jan-Egbert, 2020. "Close encounters of the European kind: Economic integration, sectoral heterogeneity and structural reforms," European Economic Review, Elsevier, vol. 129(C).
    19. Pasadilla, Gloria, 2008. "Financial Services Integration in East Asia: Lessons from the European Union," Discussion Papers DP 2008-31, Philippine Institute for Development Studies.
    20. Mark M. Spiegel, 2009. "Monetary and Financial Integration in the EMU: Push or Pull?," Review of International Economics, Wiley Blackwell, vol. 17(4), pages 751-776, September.

    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:taf:regstd:v:49:y:2015:i:8:p:1407-1422. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CRES20 .

    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.