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State-Owned Enterprises: Rationales for Mergers and Acquisitions

Author

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  • Massimo FLORIO

    (Department of Economics, Management and Quantitative methods, Università degli Studi di Milano, Italy)

  • Matteo FERRARIS

    (Istituto Superiore Mario Boella, Turin, Italy)

  • Daniela VANDONE

    (Department of Economics, Management and Quantitative methods, Università degli Studi di Milano, Italy)

Abstract

The paper contributes to the empirical literature on M&A deals performed by SOEs with a detailed analysis of the reported rationales from a sample of SOE-led acquisitions over the last decade. The sample includes 355 worldwide M&A deals performed by SOEs as acquirers over the period 2002-2012. The data set was obtained by combining firm-level information from two sources, Zephyr and Orbis (Bureau Van Dijk). The analysis is on a case-by-case basis for the rationales of the sample. Overall, the most important message arising from our analysis is that rescue of firms in financial distress is a relatively minor one role played by contemporary SOEs in spite of the Great Recession, while shareholder value maximization and long term strategic goals are more frequently the objective of the observed deals.

Suggested Citation

  • Massimo FLORIO & Matteo FERRARIS & Daniela VANDONE, 2018. "State-Owned Enterprises: Rationales for Mergers and Acquisitions," CIRIEC Working Papers 1801, CIRIEC - Université de Liège.
    • Handle: RePEc:crc:wpaper:1801
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    More about this item

    Keywords

    State-owned enterprises; M&As; nationalization; privatization;
    All these keywords.

    JEL classification:

    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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