@techreport{Frey2006role,
abstract = {Technological change is often hypothesized as one of the main drivers of merger
activities. This paper analyzes the role of technology in mergers and acquisitions (M&As) at the firm level. Based on a newly created data set that combines financial information and patent data for public limited companies in Europe as well as country level variables, we apply a structural model to investigate technology-related motivations behind merger formation. Distinguishing between cross-border and domestic M&As, we find that technological relatedness of the M&A partners reduces uncertainty and the expected risk of failure associated with cross-border acquisitions significantly, whereas there is no evidence for technological complementarities driving domestic M&As. The relevance of technology for crossborder M&As further illustrates the international character of technology markets.},
author = {Rainer Frey and Katrin Hussinger},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {O32; O34; G34; C25; 330; domestic versus cross-border M&As; technological relatedness; market relatedness; \"{U}bernahme; Fusion; Multinationales Unternehmen; Technologie; Patent; Sch\"{a}tzung; Welt},
language = {eng},
number = {2006,45},
title = {The role of technology in M&As: a firm-level comparison of cross-border and domestic deals},
type = {Discussion paper Series 1 / Volkswirtschaftliches Forschungszentrum der Deutschen Bundesbank},
url = {http://hdl.handle.net/10419/19674},
year = {2006}
}
