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Modeling The Duration Of Merger Reviews In New Zealand

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  • Qing Gong Yang
  • Michael Pickford

Abstract

The limited evidence on the speed of processing merger reviews by competition agencies shows that the time taken varies widely between cases. In this article, we explore which factors influence the duration of merger reviews by applying multivariate duration analysis to a dataset of 130 merger decisions made by the New Zealand Commerce Commission between 2001 and 2010. Our results suggest that a range of factors influence duration, including (1) the nature of the decision, and especially whether the application is declined, (2) the size of the application, (3) the potential impact on competition, measured by market concentration and barrier to entry height, (4) the complexity of the economic analysis, and (5) the Commission's merger workload. We use a competing-risks model that reflects the three alternative decisions available to the Commission (clear at stage 1, clear at stage 2, and decline). We find that the influence of some of these factors varies greatly between decision types and that declined decisions take much longer on average, probably because declines can lead to an appeal to the High Court by disappointed applicants.

Suggested Citation

  • Qing Gong Yang & Michael Pickford, 2016. "Modeling The Duration Of Merger Reviews In New Zealand," Journal of Competition Law and Economics, Oxford University Press, vol. 12(1), pages 69-97.
    • Handle: RePEc:oup:jcomle:v:12:y:2016:i:1:p:69-97.
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    File URL: http://hdl.handle.net/10.1093/joclec/nhv038
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    Cited by:

    1. Fafaliou, Irene & Giaka, Maria & Konstantios, Dimitrios & Polemis, Michael, 2022. "Firms’ ESG reputational risk and market longevity: A firm-level analysis for the United States," Journal of Business Research, Elsevier, vol. 149(C), pages 161-177.

    More about this item

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices

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