Arbeitspapier
Pre-emptive horizontal mergers: theory and evidence
This paper proposes and tests an explanation as to why rational managers seeking to maximize shareholder value can pursue value-decreasing mergers. It can be optimal to overpay for a target firm and decrease shareholder value if the loss is less than in an alternative where the merger is undertaken by a product market rival. This paper presents a model based on synergies, market power and competition for merger targets. Consistent with the model the empirical results obtained here show a strong correlation between the returns of acquiring firms and close rivals around merger events.
- ISBN
-
978-952-462-383-4
- Sprache
-
Englisch
- Erschienen in
-
Series: Bank of Finland Research Discussion Papers ; No. 17/2007
- Klassifikation
-
Wirtschaft
Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance
Information and Market Efficiency; Event Studies; Insider Trading
Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
Auctions
Oligopoly and Other Imperfect Markets
- Thema
-
acquisitions
auction
event study
oligopoly
preemption
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Molnár, József
- Ereignis
-
Veröffentlichung
- (wer)
-
Bank of Finland
- (wo)
-
Helsinki
- (wann)
-
2007
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Molnár, József
- Bank of Finland
Entstanden
- 2007
Ähnliche Objekte (12)
Preemptive Horizontal Mergers: Theory and Evidence
Preemptive distress resolution through bank mergers
Preemptive distress resolution through bank mergers
Paradise lost? A brief history of DSGE macroeconomics
A market based approach to maintaining systemic stability: experiences from New Zealand
The effects of aging population on the sustainability of fiscal policy
The 1980s financial liberalization in the Nordic countries
Should unemployment benefits decrease as the unemployment spell lengthens?
Keskuspankkien riippumattomuus: Kansainvälinen vertailu
The effects of competition on banks' risk taking with and without deposit insurance
Conditional betas and the price of risk in a thin asset market: A sensitivity analysis
Total factor productivity growth in European stock exchanges: A non-parametric frontier approach
Preemptive Horizontal Mergers: Theory and Evidence
Preemptive distress resolution through bank mergers
Preemptive distress resolution through bank mergers
Paradise lost? A brief history of DSGE macroeconomics
A market based approach to maintaining systemic stability: experiences from New Zealand
The effects of aging population on the sustainability of fiscal policy
The 1980s financial liberalization in the Nordic countries
Should unemployment benefits decrease as the unemployment spell lengthens?
Keskuspankkien riippumattomuus: Kansainvälinen vertailu
The effects of competition on banks' risk taking with and without deposit insurance
Conditional betas and the price of risk in a thin asset market: A sensitivity analysis
Total factor productivity growth in European stock exchanges: A non-parametric frontier approach
Preemptive Horizontal Mergers: Theory and Evidence
Preemptive distress resolution through bank mergers
Preemptive distress resolution through bank mergers
Paradise lost? A brief history of DSGE macroeconomics
A market based approach to maintaining systemic stability: experiences from New Zealand
The effects of aging population on the sustainability of fiscal policy
The 1980s financial liberalization in the Nordic countries
Should unemployment benefits decrease as the unemployment spell lengthens?
Keskuspankkien riippumattomuus: Kansainvälinen vertailu
The effects of competition on banks' risk taking with and without deposit insurance
Conditional betas and the price of risk in a thin asset market: A sensitivity analysis