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Buying to Sell : Private Equity Buyouts and Industrial Restructuring

Norback, Pehr-Johan - 2013

We show how temporary ownership by private equity firms affects industry structure, competition and welfare. Temporary ownership leads to strong investment incentives because equilibrium resale prices are determined by buyers incentives to block rivals from obtaining assets. These incentives...

Persistent link: https://www.econbiz.de/10013078529

The Effects of Taxation on the Location Decision of Multinational Firms : M&A vs. Greenfield Investments

Hebous, Shafik - 2013

In this study, we estimate the impacts of differences in international tax rates on the probability of choosing a location for an affiliate of a multinational firm. In particular, we distinguish between the tax sensitivity of Greenfield and M&A investments. Based on a novel firm-level dataset on...

Persistent link: https://www.econbiz.de/10013094651

Cross-Border Mergers & Acquisitions : The Facts as a Guide for International Economics

Brakman, Steven; Garretsen, Harry; Marrewijk, Charles van - 2021

Using a detailed and large data set on cross-border merger and acquisitions we discuss the relationship between theory and observed empirical characteristics: (i) most FDI is in the form of M&As, (ii) firms engaged in M&As seem to be 'market-seeking', (iii) M&As come in waves (the most recent...

Persistent link: https://www.econbiz.de/10013317375

Buying to Sell: Private Equity Buyouts and Industrial Restructuring

Norbäck, Pehr-Johan; Persson, Lars; Tag, Joacim - CESifo - 2013

Persistent link: https://www.econbiz.de/10010681223

A Model of Heterogeneous Firm Matches in Cross-Border Mergers & Acquisitions

Brakman, Steven - 2018

In contrast to empirical evidence, recent theories of cross-border mergers and acquisitions (M&As) assume perfect knowledge transfers – from high to low productivity firms – between acquirer and target. Using the Melitz (2003) model of heterogeneous firms, we develop a matching model of...

Persistent link: https://www.econbiz.de/10012914676

CEO Preferences and Acquisitions

Jenter, Dirk - 2011

of takeover bids. Mergers frequently force target CEOs to retire early, and CEOs' private merger costs are the forgone … costs, we find strong evidence that target CEO preferences affect merger patterns. The likelihood of receiving a takeover … in takeover activity appears discretely at the age-65 threshold, with no gradual increase as CEOs approach retirement age …

Persistent link: https://www.econbiz.de/10013117262

Mergers and Partial Ownership

Foros, Øystein - 2010

In this paper we compare the profitability of a merger to the profitability of a partial ownership arrangement and find that partial ownership arrangements can be more profitable for the acquiring and acquired firm because they can result in a greater dampening of competition. We also derive...

Persistent link: https://www.econbiz.de/10013148773

Source Versus Residence Based Taxation with International Mergers and Acquisitions

Becker, Johannes - 2009

This paper analyses tax competition and tax coordination in a model where capital flows occur in the form of mergers and acquisitions, rather than greenfield investment. In this framework, we show that differences in residence based taxes do not necessarily distort international ownership...

Persistent link: https://www.econbiz.de/10013153614

Creative Destruction and Productive Preemption

Norback, Pehr-Johan - 2013

We develop a theory of innovation for entry and sale into oligopoly, and show that inventions of higher quality are more likely to be sold (or licensed) to an incumbent due to strategic product market effects on the sales price. Such preemptive acquisitions by incumbents are shown to stimulate...

Persistent link: https://www.econbiz.de/10013087725

The Scope of Auctions in the Presence of Downstream Interactions and Information Externalities

Koska, Onur A. - 2015

We scrutinize the scope of auctions in the presence of downstream interactions and information externalities by using the topical example of a firm acquisition. We show that no mechanism exists that allows an investor to acquire a low-cost firm under incomplete information: a separating auction...

Persistent link: https://www.econbiz.de/10013024732