Merger activity in industry equilibrium

• 成果类型: Article
• 署名作者: Dimopoulos, Theodosios; Sacchetto, Stefano
• 署名单位: University of Lausanne; Swiss Finance Institute (SFI); University of Lausanne; University of Navarra; IESE Business School
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2017.06.014
• 发表日期: 2017
• 页码: 200-226
• 关键词: mergers; entry; EXIT; Industry equilibrium

摘要

We quantify the impact of merger activity on productive efficiency. We develop and calibrate a dynamic industry-equilibrium model that features mergers, entry, and exit by heterogeneous firms. Mergers affect productivity directly through realized synergies, and indirectly through firms' incentives to enter or exit the industry. Merger activity increases average firm productivity by 4.8%, of which 4.1% reflects the accumulation of synergies, and 0.7% the interaction between merger options and firms' entry and exit decisions. We show that ignoring the implications of merger activity for public policies that promote entry can reverse the expected impact of these policies on productivity. (C) 2017 Elsevier B.V. All rights reserved.