In today's corporate world, many companies are joining forces and combining resources in response to a rapidly changing environment; nearly every day a new acquisition or alliance is announced and covered in the corporate press. Globalization, rapid technological progress, shorter product life cycles, and in many places, stagnating markets are putting companies under increasing competitive pressure thus requiring them to effectively manage new challenges with respect to their national and international competitiveness. Within this context, business combinations are important strategic modes for firm growth and restructuring (e.g., Campa and Hernando, 2002; Capron, 1999; Haspeslagh and Jemison, 1991).
KeywordsStock Market Entrepreneurial Activity Firm Growth Parent Firm Strategic Option
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