WHEN DO FIRMS GO IN FOR GROWTH BY ACQUISITIONS

Authors
HAY DA LIU GS
Citation
Da. Hay et Gs. Liu, WHEN DO FIRMS GO IN FOR GROWTH BY ACQUISITIONS, Oxford bulletin of economics and statistics, 60(2), 1998, pp. 143
Citations number
16
Categorie Soggetti
Social Sciences, Mathematical Methods",Economics,"Statistic & Probability","Statistic & Probability
Journal title
Oxford bulletin of economics and statistics → ACNP
ISSN journal
03059049
Volume
60
Issue
2
Year of publication
1998
Database
ISI
SICI code
0305-9049(1998)60:2<143:WDFGIF>2.0.ZU;2-W
Abstract
This paper analyses the incidence of acquisitions, and the determinant s of expenditure or acquisitions, in a sample of 110 UK quoted compani es, 1970-89. Financial variables, especially those related to Jensen's 'free cash flow' theory of acquisitions are found to be significant, notably for dominant firms. But there is little support for the inclus ion of market structure variables which seek to capture the strategic role of acquisitions as an instrument of competition in oligopolistic markets.