Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/65832
Authors: 
Foreman-Peck, James
Nicholls, Tom
Year of Publication: 
2008
Series/Report no.: 
Cardiff Economics Working Papers E2008/9
Abstract: 
If large companies buy small dynamic enterprises, and move them to the headquarters' location or elsewhere, the process could suppress regional, or dependent, economy income and productivity. We investigate this hypothesis by analysing around 2 million observations of the UK enterprise- level Business Structure Database. Contrary to the experience of large firms, more productive small businesses are more subject to takeover. In addition, SMEs that have been acquired are also more likely to both exit and relocate to another region. This last finding however cuts both ways; a peripheral region or country may receive post-merger companies as well as lose them. With the exception of the core of London and the South East, British regions achieve an approximate numerical balance of relocations from SME takeovers.
Subjects: 
SMEs
takeovers
regional development
exits
relocations
JEL: 
L23
D21
R11
Document Type: 
Working Paper

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