IDEAS home Printed from https://ideas.repec.org/a/bla/jbfnac/v21y1994i6p763-790.html

The Shareholder Wealth Effects Of Monopolies And Mergers Commission Decisions

Author

Listed:
  • William Forbes

Abstract

This paper presents an analysis of the policy of the UK's Monopolies and Mergers Commission using stock market data. Stock price reactions to regula‐tory intervention by the Monopolies and Mergers Commission might be expected to reflect two sorts of factors. Firstly, the impact of the intervention on the possibility of bidders extracting monopoly profits from consumers. Secondly, the possibility that the subsequent investigation of the bid by the Monopolies and Mergers Commission will raise the cost of a bid, which may not necessarily be in the shareholder's interests, and so cause such bids to be abandoned. Studying a sample of some 53 bids, investigated by the Commission in the period 1976–90, little evidence was found that the Commission halts bids that are likely to result in monopoly profits to the bidder but there was some weak evidence that non‐shareholder wealth maximising bids are abandoned as a result of the Monopolies and Mergers Commission intervention.

Suggested Citation

  • William Forbes, 1994. "The Shareholder Wealth Effects Of Monopolies And Mergers Commission Decisions," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 21(6), pages 763-790, September.
    • Handle: RePEc:bla:jbfnac:v:21:y:1994:i:6:p:763-790
    DOI: 10.1111/j.1468-5957.1994.tb00348.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1468-5957.1994.tb00348.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1468-5957.1994.tb00348.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jbfnac:v:21:y:1994:i:6:p:763-790. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0306-686X .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.