Using rival effects to identify synergies and improve merger typologies

Arbeitspapier

The strategy literature has found it difficult to differentiate between collusive and efficiencybased synergies in horizontal merger activity. We propose a theoretically-backed methodological approach to classify mergers that yields more information on merger types and merger effects, and that can, moreover, distinguish between mergers characterized largely by collusion-based synergies and mergers characterized largely by efficiency-based synergies. Crucial to the proposed measurement approach is that it encompasses the impact of merger events not only on merging firms (custom in the literature), but also on non-merging rival firms (novel in the literature). Employing the event-study procedure with stock-market data on samples of large horizontal mergers drawn from the US and UK (an Anglo-American sub-sample) and from the European continent, we demonstrate how the proposed schematic can better clarify the nature of merger activity.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: DICE Discussion Paper ; No. 25

Classification and Topics

• Classification: Wirtschaft
• Subject: acquisitions ; event-study ; mergers ; research methods ; rivals ; synergy ; Fusion ; Horizontale Konzentration ; Synergie ; Wettbewerb ; Schätzung ; EU-Staaten ; Großbritannien ; USA

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Clougherty, Joseph A. ; Duso, Tomaso
• Event: Veröffentlichung
• (who): Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE)
• (where): Düsseldorf
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/48604
• Last update: 10.03.2025, 11:44 AM CET