Shareholder value mining: Wealth effects of takeovers in German coal mining, 1896-1913
We investigate the wealth effects of takeovers in the mining industry of the German Ruhr district between 1896 and 1913. We employ event study methodology and use a new data set that covers stock prices of joint-stock mining companies and information on share prices of Gewerkschaften, an organisational form that was exclusively designed for German mining companies. Our empirical results show that takeovers enhanced shareholder value. The clear beneficiaries were the owners of the acquired companies, those of the acquirers hardly gained significantly. Collusion in the mining industry benefited the shareholders of small, poorly performing takeover targets.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- A. Craig MacKinlay, 1997. "Event Studies in Economics and Finance," Journal of Economic Literature, American Economic Association, vol. 35(1), pages 13-39, March.
- Travlos, Nickolaos G, 1987. " Corporate Takeover Bids, Methods of Payment, and Bidding Firms' Stock Returns," Journal of Finance, American Finance Association, vol. 42(4), pages 943-63, September.
- Tilly, Richard, 1982. "Mergers, External Growth, and Finance in the Development of Large-Scale Enterprise in Germany, 1880–1913," The Journal of Economic History, Cambridge University Press, vol. 42(03), pages 629-658, September.
- Levin, D., 1988.
"Horizontal Mergers: The 50 Percent Bench-Mark,"
19, Houston - Department of Economics.
- Jarrell, Gregg A & Brickley, James A & Netter, Jeffry M, 1988. "The Market for Corporate Control: The Empirical Evidence Since 1980," Journal of Economic Perspectives, American Economic Association, vol. 2(1), pages 49-68, Winter.
- Shleifer, Andrei & Vishny, Robert W, 1988. "Value Maximization and the Acquisition Process," Journal of Economic Perspectives, American Economic Association, vol. 2(1), pages 7-20, Winter.
- Boyan Jovanovic & Peter L. Rousseau, 2002.
"The Q-Theory of Mergers,"
NBER Working Papers
8740, National Bureau of Economic Research, Inc.
- Fohlin,Caroline, 2007.
"Finance Capitalism and Germany's Rise to Industrial Power,"
Cambridge University Press, number 9780521810203, November.
- Fohlin,Caroline, 2011. "Finance Capitalism and Germany's Rise to Industrial Power," Cambridge Books, Cambridge University Press, number 9780521396608, November.
- Jeremy Edwards & Sheilagh Ogilvie, 1996.
"Universal banks and German industrialization: a reappraisal,"
Economic History Review,
Economic History Society, vol. 49(3), pages 427-446, 08.
- Edwards, Jeremy & Ogilvie, Sheilagh C., 1995. "Universal Banks and German Industrialization: A Reappraisal," CEPR Discussion Papers 1171, C.E.P.R. Discussion Papers.
- Matthew Rhodes-Kropf & S. Viswanathan, 2004. "Market Valuation and Merger Waves," Journal of Finance, American Finance Association, vol. 59(6), pages 2685-2718, December.
- Leeth, John D. & Borg, J. Rody, 2000. "The Impact of Takeovers on Shareholder Wealth during the 1920s Merger Wave," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 35(02), pages 217-238, June.
- Andrei Shleifer & Robert W. Vishny, 2001.
"Stock Market Driven Acquisitions,"
NBER Working Papers
8439, National Bureau of Economic Research, Inc.
- Roll, Richard, 1986. "The Hubris Hypothesis of Corporate Takeovers," The Journal of Business, University of Chicago Press, vol. 59(2), pages 197-216, April.
- Caroline Fohlin, 2005. "The History of Corporate Ownership and Control in Germany," NBER Chapters, in: A History of Corporate Governance around the World: Family Business Groups to Professional Managers, pages 223-282 National Bureau of Economic Research, Inc.
- Fohlin, Caroline & Gehrig, Thomas, 2006.
"Trading Costs in Early Securities Markets: The Case of the Berlin Stock Exchange, 1880-1910,"
CEPR Discussion Papers
5827, C.E.P.R. Discussion Papers.
- Thomas Gehrig & Caroline Fohlin, 2006. "Trading Costs in Early Securities Markets: The Case of the Berlin Stock Exchange 1880–1910," Review of Finance, European Finance Association, vol. 10(4), pages 587-612, December.
- Stephen W. Salant & Sheldon Switzer & Robert J. Reynolds, 1983. "Losses From Horizontal Merger: The Effects of an Exogenous Change in Industry Structure on Cournot-Nash Equilibrium," The Quarterly Journal of Economics, Oxford University Press, vol. 98(2), pages 185-199.
- Margaret C. Levenstein & Valerie Y. Suslow, 2002. "What Determines Cartel Success?," UMASS Amherst Economics Working Papers 2002-01, University of Massachusetts Amherst, Department of Economics.
- Webb, Steven B., 1982. "Agricultural Protection in Wilhelminian Germany: Forging an Empire with Pork and Rye," The Journal of Economic History, Cambridge University Press, vol. 42(02), pages 309-326, June.
- Gregor Andrade & Mark Mitchell & Erik Stafford, 2001. "New Evidence and Perspectives on Mergers," Journal of Economic Perspectives, American Economic Association, vol. 15(2), pages 103-120, Spring.
- Gelman, Sergey & Burhop, Carsten, 2008. "Taxation, regulation and the information efficiency of the Berlin stock exchange, 1892–1913," European Review of Economic History, Cambridge University Press, vol. 12(01), pages 39-66, April.
- Webb, Steven B., 1980. "Tariffs, Cartels, Technology, and Growth in the German Steel Industry, 1879 to 1914," The Journal of Economic History, Cambridge University Press, vol. 40(02), pages 309-330, June.
- Marco Becht & Carlos D. Ramírez, 2003.
"Does Bank Affiliation Mitigate Liquidity Constraints? Evidence from Germany's Universal Banks in the Pre-World War I Period,"
Southern Economic Journal,
Southern Economic Association, vol. 70(2), pages 254-272, October.
- Marco Becht & Carlos Ramirez, 2003. "Does bank affiliation mitigate liquidity constraints? Evidence from Germany's Universal banks in the pre-World War I period," ULB Institutional Repository 2013/13310, ULB -- Universite Libre de Bruxelles.
- Peters, Lon L., 1989. "Managing Competition in German Coal, 1893–1913," The Journal of Economic History, Cambridge University Press, vol. 49(02), pages 419-433, June.
- Burhop, Carsten & Wolff, Guntram B., 2005. "A Compromise Estimate of German Net National Product, 1851 1913, and its Implications for Growth and Business Cycles," The Journal of Economic History, Cambridge University Press, vol. 65(03), pages 613-657, September.
- Kling, Gerhard, 2006. "The long-term impact of mergers and the emergence of a merger wave in pre-World-War I Germany," Explorations in Economic History, Elsevier, vol. 43(4), pages 667-688, October.
- Burhop, Carsten, 2006. "Did banks cause the German industrialization?," Explorations in Economic History, Elsevier, vol. 43(1), pages 39-63, January.
- Brown, Stephen J. & Warner, Jerold B., 1985. "Using daily stock returns : The case of event studies," Journal of Financial Economics, Elsevier, vol. 14(1), pages 3-31, March.
- Brown, Stephen J. & Warner, Jerold B., 1980. "Measuring security price performance," Journal of Financial Economics, Elsevier, vol. 8(3), pages 205-258, September.
- Bittner, Thomas, 2005. "An event study of the Rhenish-Westphalian Coal Syndicate," European Review of Economic History, Cambridge University Press, vol. 9(03), pages 337-364, December.
- Tobin, James, 1969. "A General Equilibrium Approach to Monetary Theory," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 1(1), pages 15-29, February.
- Jarrell, Gregg A & Poulsen, Annette B, 1989. "Stock Trading before the Announcement of Tender Offers: Insider Trading or Market Anticipation?," Journal of Law, Economics and Organization, Oxford University Press, vol. 5(2), pages 225-48, Fall.
- Huck, Steffen & Konrad, Kai A. & Muller, Wieland, 2001. "Big fish eat small fish: on merger in Stackelberg markets," Economics Letters, Elsevier, vol. 73(2), pages 213-217, November.
- Gerhard Kling, 2006. "Does the merger paradox exist even without any regulations? Evidence from Germany in the pre-1914 period," Empirica, Springer, vol. 33(5), pages 315-328, December.
When requesting a correction, please mention this item's handle: RePEc:eee:exehis:v:45:y:2008:i:4:p:462-476. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.