The Cross Border Mergers and Acquisitions Wave of the Late 1990s

54 Pages Posted: 27 Apr 2003 Last revised: 1 Oct 2009

See all articles by Simon J. Evenett

Simon J. Evenett

University of Oxford - Said Business School; Centre for Economic Policy Research (CEPR)

Date Written: April 2003

Abstract

To establish a benchmark, the cross border mergers and acquisitions wave of the late 1990s is compared to its predecessor in the late 1980s. It is found to be at least five times larger (in real terms), to involve firms from more OECD nations, and to include many more service sector transactions. However, in comparison to the size of national stock market capitalizations, foreign mergers with and acquisitions of domestic firms during this latest wave were small, especially in the Group of Seven leading industrial economies. The effect of cross border mergers and acquisitions on performance in one important service sector, banking, is also examined. Specifically, the relative importance of cross border mergers and acquisitions, domestic mergers and acquisitions, domestic entry and exit, and strategic alliances and joint ventures for interest rate spreads was estimated for 13 industrial nations. The principal findings suggest that the effects of these firm-driven changes in banking market structure differ markedly between EU member states and non-EU industrialized economies. This highlights the importance of differentiating between types of cross border inter-firm agreements and the pitfalls of generalising about the effects of the latest wave of cross border mergers and acquisitions as many of the harshest critics of globalization do.

Suggested Citation

Evenett, Simon J., The Cross Border Mergers and Acquisitions Wave of the Late 1990s (April 2003). NBER Working Paper No. w9655. Available at SSRN: https://ssrn.com/abstract=398558

Simon J. Evenett (Contact Author)

University of Oxford - Said Business School ( email )

Park End Street
Oxford, OX1 1HP
Great Britain
44 1865 288 875 (Phone)
44 1865 288 805 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Register to save articles to
your library

Register

Paper statistics

Downloads
150
rank
192,157
Abstract Views
3,742
PlumX Metrics
!

Under construction: SSRN citations will be offline until July when we will launch a brand new and improved citations service, check here for more details.

For more information