IDEAS home Printed from https://ideas.repec.org/p/ltr/wpaper/1997.09.html
   My bibliography  Save this paper

Interindustry Takeover, Economies of Scope, and Takeover Premia

Author

Listed:
  • Chongwoo Choe

    (Department of Economics and Finance, La Trobe University)

  • Chander Shekhar

    (Department of Economics and Finance, La Trobe University)

Abstract

The existence of takeover premia is well established in the finance literature. This research motivates the existence of premia by utilising the concept of economies of scope which are empirically proxied by the 'closeness' of industries, and subsequently provides a theoretical framework for the analysis. Potential takeover premia are shown to exist under standard conditions of Cournot competition for firms which operate in two related industries and for whom the products are considered to be strategic substitutes.

Suggested Citation

  • Chongwoo Choe & Chander Shekhar, 1997. "Interindustry Takeover, Economies of Scope, and Takeover Premia," Working Papers 1997.09, School of Economics, La Trobe University.
  • Handle: RePEc:ltr:wpaper:1997.09
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    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:ltr:wpaper:1997.09. 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: (Stephen Scoglio). General contact details of provider: http://edirc.repec.org/data/sblatau.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.