Economic Shocks, Competition and Merger Activity

2012 ◽  
Author(s):  
Kevin Okoeguale
Keyword(s):  
Economic Shocks ◽  
Merger Activity

scholarly journals ECONOMIC SHOCKS, COMPETITION AND MERGER ACTIVITY

10.26870/1 ◽  
2019 ◽  
Vol 1 (1) ◽  
pp. 1-1 ◽  
Author(s):  
Marcin W. Krolikowski ◽  
Kevin Okoeguale
Keyword(s):  
Technological Change ◽  
Cash Flow ◽  
Production Technology ◽  
Economic Shocks ◽  
Merger Activity ◽  
Industry Competition ◽  
Competitive Mechanism ◽  
Cash Flow Volatility

This study seeks to understand “how” economic shocks drive industry merger activity. We test whether economic shocks from deregulation and technological change drive industry merger activity by increasing industry competition, controlling for the effect of valuations. We find that these shocks drive merger activity through three channels related to industry competition; deregulation drives merger activity by increasing entry and cash flow volatility; technological change drives merger activity by increasing entry and inter-firm dispersion in the quality of production technology. These findings underscore the role of the competitive mechanism in how managers reallocate assets via mergers and support the view that the industry-level clustering of merger activity is an efficiency-driven restructuring response to increased competition.

Political Attitudes, Partisanship, and Merger Activity

2019 ◽  
Author(s):  
Ran Duchin ◽  
Abed El Karim Farroukh ◽  
Jarrad Harford ◽  
Tarun Patel
Keyword(s):  
Political Attitudes ◽  
Merger Activity
Sign in / Sign up

Export Citation Format

Share Document