Event Analysis of Air Carrier Mergers and Acquisitions
AbstractThis paper offers an event analysis of nine airline mergers proposed in 1986, in an attempt to determine whether firms, if given the opportunity, will merge to gain market power. The Jaffe/Mandelker method of independent event draws is used as the event test. Abnormal returns experienced by competitors to those airlines announcing mergers support the merger for market power hypothesis, contradicting previous literature on horizontal mergers. Copyright 1990 by MIT Press.
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Bibliographic InfoArticle provided by MIT Press in its journal Review of Economics & Statistics.
Volume (Year): 72 (1990)
Issue (Month): 4 (November)
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- Hüschelrath, Kai & Müller, Kathrin, 2012. "The competitive effects of firm exit: Evidence from the US airline industry," ZEW Discussion Papers 12-037, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Mei, Bin & Sun, Changyou, 2008. "Event analysis of the impact of mergers and acquisitions on the financial performance of the U.S. forest products industry," Forest Policy and Economics, Elsevier, vol. 10(5), pages 286-294, April.
- Hüschelrath, Kai & Müller, Kathrin, 2013. "The competitive effects of firm exit," Economics of Transportation, Elsevier, vol. 2(2), pages 72-85.
- Bahram Adrangi & Garland Chow & Kambiz Raffiee, 1999. "The Effects of Market Structure and Technology on Airline Fleet Composition after Deregulation," Review of Industrial Organization, Springer, vol. 15(1), pages 77-88, August.
- Fee, C. Edward & Thomas, Shawn, 2004. "Sources of gains in horizontal mergers: evidence from customer, supplier, and rival firms," Journal of Financial Economics, Elsevier, vol. 74(3), pages 423-460, December.
- Warell, Linda, 2007. "A horizontal merger in the iron ore industry: An event study approach," Resources Policy, Elsevier, vol. 32(4), pages 191-204, December.
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