Arbeitspapier
The impact of horizontal mergers on rivals: Gains to being left outside a merger
It is commonly perceived that firms do not want to be outsiders to a merger between competitor firms. We instead argue that it is beneficial to be a nonmerging rival firm to a large horizontal merger. Using a sample of mergers with expert-identification of relevant rivals and the event-study methodology, we find rivals generally experience positive abnormal returns at the merger announcement date. Further, we find that the stock reaction of rivals to merger events is not sensitive to merger waves; hence, 'future acquisition probability' does not drive the positive abnormal returns of rivals. We then build a conceptual framework that encompasses the impact of merger events on both merging and rival firms in order to provide a schematic to elicit more information on merger type.
- Sprache
-
Englisch
- Erschienen in
-
Series: WZB Discussion Paper ; No. SP II 2008-17r
- Klassifikation
-
Wirtschaft
- Thema
-
Rivals
Mergers
Acquisitions
Event-Study
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Clougherty, Joseph A.
Duso, Tomaso
- Ereignis
-
Veröffentlichung
- (wer)
-
Wissenschaftszentrum Berlin für Sozialforschung (WZB)
- (wo)
-
Berlin
- (wann)
-
2008
- Handle
- Letzte Aktualisierung
-
10.08.2025, 17:27 MESZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Clougherty, Joseph A.
- Duso, Tomaso
- Wissenschaftszentrum Berlin für Sozialforschung (WZB)
Entstanden
- 2008
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