Merger waves: a model of endogenous mergers

• 成果类型: Article
• 署名作者: Qiu, Larry D.; Zhou, Wen
• 署名单位: Hong Kong University of Science & Technology; University of Hong Kong
• 刊物名称: RAND JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0741-6261
• DOI: 10.1111/j.1756-2171.2007.tb00052.x
• 发表日期: 2007
• 页码: 214-226
• 关键词: horizontal mergers; equilibrium-analysis; takeover

摘要

We develop a model of endogenous mergers to study their dynamic process. Firms choose whether, when, and with whom to merge. Two necessary conditions are identified for mergers to occur:firm heterogeneity and negative demand shocks. We show that mergers are strategic complements and therefore tend to occur in waves. Moreover, some mergers occur for strategic reasons in order to precipitate further mergers.