Book Review

Books reviewed:
Ira A. Jackson and Jane Nelson, Profits with Principles: Seven Strategies for Delivering Values with Values .     

Common Stock Returns in Corporate Takeover Bids: The Case of Brokerage House Acquisitions

This paper examines the common stock returns of three groups of bidders that purchased brokerage houses. Only in the cases of horizontal mergers, one brokerage house purchasing another, are there abnormal returns associated with the purchase. Neither bank holding company bidders nor non-financial bidders gain significantly when purchasing a brokerage house. Bank holding company bidders face considerable regulatory delays, and these economic disturbances may eliminate their gains. Bank holding company expansion into these non-bank activities does not appear, at the time of announcement, to either hurt or benefit them; hence, this expansion does not appear to further the loss exposure of the Federal Deposit Insurance Corporation.     

Government Policy and the Evolution of the Market for Dutch Daily Newspapers

This paper investigates whether governments can change market structures through interventions. We study the effects of four political events over the life cycle of the market for daily newspapers in the Netherlands. We find that policy measures meant to lower entry barriers in an expanding industry created new entry and increased survival chances for potential entrants and incumbent newspapers. Exit barrier enhancing policies to reduce concentration tendencies have not been successful.