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Why are there merger waves?

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  • Ocaña Pérez de Tudela, Carlos

Abstract

This paper develops a model of the timing of merger waves based on the investment opportunityı synergy (lOS) hypothesis. The model reveals some important weaknesses on the presumedı implications of IOS and suggests that changes in the institutional framework may be responsibleı for the long-term changes in merger activity. The analysis of FTC "Large Firm" Merger andı Acquisitions time series gives additional support to these conclusions.

Suggested Citation

  • Ocaña Pérez de Tudela, Carlos, 1994. "Why are there merger waves?," DEE - Working Papers. Business Economics. WB 7073, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    • Handle: RePEc:cte:wbrepe:7073
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    References listed on IDEAS

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    1. Andrei Shleifer & Robert W. Vishny, 1991. "Takeovers in the '60s and the '80s: Evidence and implications," Strategic Management Journal, Wiley Blackwell, vol. 12(S2), pages 51-59, December.
    2. 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.
    3. Devra L. Golbe & Lawrence J. White, 1988. "A Time-Series Analysis of Mergers and Acquisitions in the U.S. Economy," NBER Chapters, in: Corporate Takeovers: Causes and Consequences, pages 265-310, National Bureau of Economic Research, Inc.
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    5. Bittlingmayer, George, 1985. "Did Antitrust Policy Cause the Great Merger Wave?," Journal of Law and Economics, University of Chicago Press, vol. 28(1), pages 77-118, April.
    6. Phillips, P C B, 1987. "Time Series Regression with a Unit Root," Econometrica, Econometric Society, vol. 55(2), pages 277-301, March.
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