<scp>M</scp>erger and<scp>A</scp>cquisition Activity as Driver of Spatial Clustering: The Spatial Evolution of the<scp>D</scp>utch Banking Industry, 1850–1993

Abstract

Abstract This article investigates the extent to which merger and acquisition ( M &amp; A ) activity contributed to the spatial clustering of the D utch banking industry in A msterdam. This analysis is based on a unique database of all banks in the N etherlands that existed in the period 1850–1993. We found that spatial clustering of the D utch banking industry was not driven by the fact that banks performed better in the A msterdam region: being located in A msterdam decreased rather than increased the survival chances of banks. However, banks in A msterdam were disproportionally active in acquiring other banks outside A msterdam. Experience in M &amp; A s accumulated mainly in the Amsterdam region, which in turn had a positive impact on the survival chances of banks located there. Our findings suggest that M &amp; A activity was a driving force behind the spatial clustering of the D utch banking industry between 1850 and 1993.