On the Motives and Geographical Structure of Finnish Mergers and Acquisitions

Abstract

We have estimated a multilogit model for the probabilities that a firm will acquire or become a target in different M&A categories, which are defined according to the distance between an acquiring firm and a target. We discovered that such characteristics of a firm that can be regarded as an indication of a good monitoring capacity or ability to internalise the potential synergies of M&As increase the probability that the firm acquires a distant firm. Respectively, such factors that ease the monitoring of a firm’s quality increase the probability that the firm becomes a target in a distant M&A.

• ISSN: 1457-2923
• ISBN: 952-5071-91-X
• JEL: D8, G34, R30
• Publication in PDF-format