Exploring the incremental merger value from multimarket and technology arguments |
| |
| Affiliation: | 1. Department of Medicine, Medical College of Wisconsin, 8701 Watertown Plank Rd., Milwaukee, WI 53226, USA;2. Center for Advancing Population Science, Medical College of Wisconsin, 8701 Watertown Plank Rd., Milwaukee, WI 53226, USA;3. Purdue University, Department of Economics, Krannert School of Management, 403 West State Street, West Lafayette, IN 47907-2056, USA;4. CESifo, Munich, Germany;1. Office of Communications UK;2. Dipartimento di Scienze Economiche ed Aziendali “M. Fanno”, Università di Padova, Italy;3. School of Economics and Centre for Competition Policy, University of East Anglia, UK;1. Managing Economist, Bates White Economic Consulting, 2001 K Street NW, North Building, Suite 500, Washington, DC 20036, United States;2. Yale University and NBER, 195 Prospect Street, New Haven, CT 06511, United States;1. Dipartimento di Economia e Finanza, Catholic University of Milan, Via Necchi 5, 20123 Milano, Italy;2. Dipartimento di Matematica per le Scienze Economiche, Finanziarie ed Attuariali, Catholic University of Milan, Largo Gemelli 1, Milano 20123, Italy;1. Compass Lexecon, Spain;2. Graduate Institute of International and Development Studies, Geneva, CEPR and Compass Lexecon, Belgium;3. Bergamo University and Compass Lexecon, Italy |
| |
| Abstract: | We address the question through which channels mergers create incremental value to merging firms and consider various product market and technological arguments. Based on the pairwise stable allocation concept, we estimate firms’ pair-specific (incremental) merger value functions. Our results show that technological arguments contribute to the majority of added merger value. We also find that market power arguments across multiple markets contribute to explaining incremental post-merger value. In contrast, multimarket strategic effects do not add merger value. Our estimated match values are aligned with the merging firms’ post-merger stock market performance. |
| |
| Keywords: | |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
