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Determinants of Growth through Mergers and Acquisitions: Empirical Results from Belgium

Author

Listed:
  • Luypaert, Mathieu

    (Hogeschool-Universiteit Brussel (HUB), Belgium
    Katholieke Universiteit Leuven, Belgium)

  • Huyghebaert, Nancy

    (Katholieke Universiteit Leuven, Belgium)

Abstract

This paper empirically investigates the determinants of growth through mergers and acquisitions (M&As) in a typical Continental European country, Belgium. By analyzing firm characteristics, industry and aggregate market variables, we are able to determine what motives are important in the decision to acquire. Our results show that intangible capital and firm size significantly positively affect the M&A decision whereas ownership concentration and bank loans have a negative impact. Furthermore, M&As are significantly more likely in industries where incumbents are operating at a relatively low scale, that are less concentrated, and that were recently deregulated.

Suggested Citation

  • Luypaert, Mathieu & Huyghebaert, Nancy, 2008. "Determinants of Growth through Mergers and Acquisitions: Empirical Results from Belgium," Working Papers 2008/06, Hogeschool-Universiteit Brussel, Faculteit Economie en Management, revised 11 Jun 2009.
    • Handle: RePEc:hub:wpecon:200806
    DOI: 10.1016/j.jbusres.2009.06.003
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    File URL: http://dx.doi.org/10.1016/j.jbusres.2009.06.003
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    Citations

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    Cited by:

    1. Katrien Craninckx & Nancy Huyghebaert, 2011. "Can Stock Markets Predict M&A Failure? A Study of European Transactions in the Fifth Takeover Wave," European Financial Management, European Financial Management Association, vol. 17(1), pages 9-45, January.
    2. Themistokles Lazarides & Evaggelos Drimpetas, 2016. "Defining the factors of Fitch rankings in the European banking sector," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 6(2), pages 315-339, August.

    More about this item

    Keywords

    mergers and acquisitions; growth; motives; ownership; financing;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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