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Mergers and macro‐economic factors

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  • Joseph Yagil

Abstract

This study investigates the relationship between macro‐economic factors and the time pattern of the degree of merger activity in the U.S. economy. The results of the study imply that whether mergers are motivated by operating or financial synergy, they are closely related to macro‐economic factors. The findings also indicate that this relationship is stronger for pure conglomerate than for non‐conglomerate mergers, and that while the impact of the interest rate on “cash” mergers is positive, for “securities” mergers the impact is negative.

Suggested Citation

  • Joseph Yagil, 1996. "Mergers and macro‐economic factors," Review of Financial Economics, John Wiley & Sons, vol. 5(2), pages 181-190.
    • Handle: RePEc:wly:revfec:v:5:y:1996:i:2:p:181-190
    DOI: 10.1016/S1058-3300(96)90014-2
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    References listed on IDEAS

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    1. Fishman, Michael J, 1989. " Preemptive Bidding and the Role of the Medium of Exchange in Acquisitions," Journal of Finance, American Finance Association, vol. 44(1), pages 41-57, March.
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    5. Amihud, Yakov & Lev, Baruch & Travlos, Nickolaos G, 1990. "Corporate Control and the Choice of Investment Financing: The Case of Corporate Acquisitions," Journal of Finance, American Finance Association, vol. 45(2), pages 603-616, June.
    6. Bruner, Robert F., 1988. "The Use of Excess Cash and Debt Capacity as a Motive for Merger," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 23(2), pages 199-217, June.
    7. 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 943-963, September.
    8. Jensen, Michael C. & Ruback, Richard S., 1983. "The market for corporate control : The scientific evidence," Journal of Financial Economics, Elsevier, vol. 11(1-4), pages 5-50, April.
    9. Melicher, Ronald W & Ledolter, Johannes & D'Antonio, Louis J, 1983. "A Time Series Analysis of Aggregate Merger Activity," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 423-430, August.
    10. Halpern, Paul, 1983. "Corporate Acquisitions: A Theory of Special Cases? A Review of Event Studies Applied to Acquisitions," Journal of Finance, American Finance Association, vol. 38(2), pages 297-317, May.
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    Cited by:

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