From the Publisher
The focus of this dissertation is twofold. Firstly, to examine the spatial implications of Canadian domestic mergers and acquisitions activity. Secondly, to address the spatial implications of international mergers and acquisitions activity coming into Canada. To accomplish these goals, four objectives had to be met.
The first objective is to establish a comprehensive literature review of both, the mergers and acquisitions and foreign direct investment literature. This is accomplished to capture the full scope (motives and theories) of Canada's domestic and international mergers and acquisitions arena. The second objective is to develop a mergers and acquisitions and foreign direct investment model based on spatial imperfections. This model illustrates the importance of differing spatial imperfections (market failure imperfections, market disequilibrium imperfections, government imposed distortions, market structure imperfections and information imperfections) at the macro-level, meso-level and micro-level of the urban hierachy when investment by firms through mergers and acquisitions occurs.
The third objective is to employ a methodology that would enable the researcher to explain the spatial/locational dimension of domestic and international mergers and acquisitions activity. In this study, this is accomplished by employing three different statistical techniques: log-linear analysis, multidimensional scaling and poisson regression analysis. Domestically, it is concluded that, over time, firms based in Toronto, Montreal, Vancouver and Calgary, have been the major actors from both an acquiring and acquired standpoint. Internationally, it is concluded that the greatest propensity of foreign direct investment via mergers and acquisitions coming into Canada is conducted by firms headquartered in the United States and the United Kingdom.
The last objective is to test a spatial imperfections theory, over time, when mergers and acquisitions are employed as a vehicle for foreign direct investment. It is concluded that depending on the state of Canada's economy and, depending on the year of activity, different spatial imperfections are in place that make domestic and international mergers and acquisitions activity more conducive in some provinces versus others. In the case of domestic mergers and acquisitions, the spatial imperfections that allowed provinces to be more conducive versus others are; corporate infrastructure, financial/economic, government subsidies and taxes. In the case of international mergers and acquisitions activity, corporate infrastructure, financial/economic and trade are the key spatial imperfections that enabled some provinces to experience higher rates of activity.
