Screening and Merger Activity

Arbeitspapier

In our paper targets, by setting a reserve price, screen acquirers on their (expected) ability to generate merger-speci?c synergies. Both empirical evidence and many common merger models suggest that the di?erence between high- and low-synergy mergers becomes smaller during booms. This implies that the target's opportunity cost for sorting out relatively less ?tting acquirers increases and, hence, targets screen less tightly during booms, which leads to a hike in merger activity. Our screening mechanism not only predicts that merger activity is intense during economic booms and subdued during recessions but is also consistent with other stylized facts about takeovers and generates novel testable predictions.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: SFB/TR 15 Discussion Paper ; No. 270

Classification and Topics

• Classification: Wirtschaft
• Subject: Takeovers ; Merger Waves ; Defense Tactics ; Screening ; Fusion ; Übernahme ; Konjunktur ; Industrieökonomik ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Banal-Estanol, Albert ; Heidhues, Paul ; Nitsche, Rainer ; Seldeslachts, Jo
• Event: Veröffentlichung
• (who): Sonderforschungsbereich/Transregio 15 - Governance and the Efficiency of Economic Systems (GESY)
• (where): München
• (when): 2009

Further information

• DOI: doi:10.5282/ubm/epub.13282
• Handle: http://hdl.handle.net/10419/94108
• URN: urn:nbn:de:bvb:19-epub-13282-5
• Last update: 10.03.2025, 11:43 AM CET