The purpose of our paper is to examine the profitability and social desirability of both domestic and foreign mergers … refer to hollowing-out as the situation where the target firm is shut down following a merger with a domestic or foreign … acquirer. Our analysis shows that mergers have ambiguous effects on the profitability of merged firms and on social welfare …

We analyze an oligopolistic market where a domestic and a foreign firm are engaged in a takeover battle for a domestic … of government. With an unbiased competition agency we find that the foreign takeover is more likely to occur the higher … foreign attempts to acquire domestic firms. …

foreign firm are engaged in a takeover battle for a domestic competitor. Any merger or acquisition (M&A) must be approved by … the national government whose objective function may include a bias against the foreign takeover. That bias endogenously … qualitatively different effect. The foreign takeover would then only emerge in an intermediate range of trade costs. Once trade …

We analyze an oligopolistic market where a domestic and a foreign firm are engaged in a takeover battle for a domestic … of government. With an unbiased competition agency we find that the foreign takeover is more likely to occur the higher … foreign attempts to acquire domestic firms …