Aaltodoc publication archive (Aalto University institutional repository)
School of Business | Department of Finance | Finance | 2013
Thesis number: 13425
The impact of vertical relations in explaining the division of gains in mergers - European evidence
|Title:||The impact of vertical relations in explaining the division of gains in mergers - European evidence|
|Year:||2013 Language: eng|
|Department:||Department of Finance|
|Index terms:||rahoitus; financing; yrityskaupat; corporate acquisitions; fuusiot; mergers; ekonometria; econometrics; Eurooppa; Europe|
» hse_ethesis_13425.pdf size:2 MB (1618529)
|Key terms:||M&A; mergers; division of gains; vertical relations; input-output analysis; I/O methodology; commodities; econometrics; Europe; yrityskauppa; fuusio; arvonnousun jakautuminen; vertikaaliset yrityssuhteet; input-output taulukot; ekonometria; tavarat; Eurooppa|
Vertical mergers remain relatively little studied topic in corporate finance. In this thesis I use input-output tables to identify vertical mergers and measure the degree of vertical dependence between the acquirer and the target in European mergers in the years 1990 to 2012. Using this information I study if the division of euro denominated gains in vertical mergers is influenced by the degree of vertical dependence between the target and the acquirer. Furthermore, I present data on the proportions of different mergers in Europe and demonstrate that vertical mergers are more common than suggested by traditional methods of identifying related mergers. Although I do not find conclusive evidence that vertical dependence between the acquirer and target influence the division of gains, I find clues that this is indeed the case and would warrant further research.
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