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The determinants of merger waves: An international perspective

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  • Gugler, Klaus
  • Mueller, Dennis C.
  • Weichselbaumer, Michael
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    Abstract

    One of the most conspicuous features of mergers is that they come in waves that are correlated with increases in share prices and price/earnings ratios. We use a natural way to discriminate between pure stock market influences on firm decisions and other influences by examining merger patterns for both listed and unlisted firms. If “real” changes in the economy drive merger waves, as some neoclassical theories of mergers predict, both listed and unlisted firms should experience waves. We find significant differences between listed and unlisted firms as predicted by behavioral theories of merger waves.

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    Bibliographic Info

    Article provided by Elsevier in its journal International Journal of Industrial Organization.

    Volume (Year): 30 (2012)
    Issue (Month): 1 ()
    Pages: 1-15

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    Handle: RePEc:eee:indorg:v:30:y:2012:i:1:p:1-15

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    Web page: http://www.elsevier.com/locate/inca/505551

    Related research

    Keywords: Merger waves; Listed versus unlisted firms; Managerial discretion; Overvaluation;

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    References

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    Cited by:
    1. Boateng, Agyenim & Hua, Xiuping & Uddin, Moshfique & Du, Min, 2014. "Home country macroeconomic factors on outward cross-border mergers and acquisitions: Evidence from the UK," Research in International Business and Finance, Elsevier, vol. 30(C), pages 202-216.
    2. Duso, Tomaso & Gugler, Klaus & Szücs, Florian, 2012. "An empirical assessment of the 2004 EU merger policy reform," DICE Discussion Papers 58, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).

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