Dynamic Competition, Valuation, and Merger Activity

• 成果类型: Article
• 署名作者: Spiegel, Matthew; Tookes, Heather
• 署名单位: Yale University
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/j.1540-6261.2012.01796.x
• 发表日期: 2013
• 页码: 125-172
• 关键词: ADVERTISING STRATEGIES; capital structure; corporate; debt; announcements; contagion; MODEL; RISK

摘要

We model the interactions between product market competition and investment valuation within a dynamic oligopoly. To our knowledge, the model is the first continuous-time corporate finance model in a multiple firm setting with heterogeneous products. The model is tractable and amenable to estimation. We use it to relate current industry characteristics with firm value and financial decisions. Unlike most corporate finance models, it produces predictions regarding parameter magnitudes as well their signs. Estimates of the model's parameters indicate strong linkages between model-implied and actual values. The paper uses the estimated parameters to predict rivals returns near merger announcements.