Causes and consequences of merger waves

Arbeitspapier

This paper presents some ideas about determinants of merger waves and some evidence on their effect on profitability and employment. A brief survey of previous merger waves and an analysis of the recent one give support to the hypothesis that sectoral shocks are at the root of merger waves. Deregulation and globalization are identified as the shocks responsible for the latest wave. The impact of merger activities on profitability and employment growth are studied by using the DOME database which has been built up at the Kiel Institute of World Economics. On average, performance of merging and non-merging firms do not differ significantly. In smal­ler, more homogenous sub-samples, however, substantial sectoral differences are found. The most important determinant of the success of mergers is the size of the target unit.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Kiel Working Paper ; No. 1092

Classification and Topics

• Classification: Wirtschaft ; Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance ; Firm Organization and Market Structure ; Multinational Firms; International Business
• Subject: deregulation ; globalization ; event studies ; mergers ; Fusion ; Übernahme ; Branche ; Schock ; Strukturwandel ; Deregulierung ; Globalisierung ; Rentabilität ; Beschäftigungseffekt ; Erfolgsfaktor ; Schätzung ; Welt

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Kleinert, Jörn ; Klodt, Henning
• Event: Veröffentlichung
• (who): Kiel Institute of World Economics (IfW)
• (where): Kiel
• (when): 2002

Further information

• Handle: http://hdl.handle.net/10419/2692
• Last update: 10.03.2025, 11:44 AM CET