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This paper provides a theory of strategic innovation project choice by incumbents and start-ups. We show that prohibiting killer acquisitions strictly reduces the variety of innovation projects. By contrast, we find that prohibiting other acquisitions only has a weakly negative innovation...
Persistent link: https://www.econbiz.de/10012263689
There is a growing concern that U.S. merger control may have been too lenient, but empirical evidence remains limited … reviewing the use and challenges of event studies in merger analysis, I use a novel application of Hoberg-Phillips (2010, 2016 ….S. mergers between 1997 and 2017. I document that following a merger announcement, the most likely competitors experience on …
Persistent link: https://www.econbiz.de/10012161053
Over the period 2015-2017, the five giant technologically leading firms, Google, Amazon, Facebook, Amazon and Microsoft (GAFAM) acquired 175 companies, from small start-ups to billion dollar deals. By investigating this intense M&A, this paper ambitions a better understanding of the Big Five's...
Persistent link: https://www.econbiz.de/10012154717
increased the risks associated with the merger control process for businesses in Ireland and the EU. The first section of this … section examines proposed reforms regarding the types of transactions which must be notified under the merger control rules at …
Persistent link: https://www.econbiz.de/10014130931
This paper provides a theory of strategic innovation project choice by incumbents and start-ups. We show that prohibiting killer acquisitions strictly reduces the variety of innovation projects. By contrast, we find that prohibiting other acquisitions only has a weakly negative innovation...
Persistent link: https://www.econbiz.de/10013330715
The paper presents the theoretical framework explaining the primary cause of mergers of the service-oriented firms. Using the example of equity analyst firms, I analyze the motivation behind these mergers. The analysis is not limited to the aforementioned type of firms and could be extended to...
Persistent link: https://www.econbiz.de/10013309427
studies a sample of past cases composed of all merger transactions reviewed by the European Commission (“EC”) in ICT …’s products, a weakening of competing firms, and/or a post-merger lowering or absence of entry and innovation. In other words, the … paper’s findings are strong. Indeed, the paper’s methodology overcomes the inherent challenge to observe the post-merger …
Persistent link: https://www.econbiz.de/10014351178
, including merger remedies and the tax treatment of acquisitions and initial public offerings. Such interventions tend to prevent …
Persistent link: https://www.econbiz.de/10014308004
There are legal grounds to hear competitors in merger control proceedings, and competitor involvement has gained … in EU merger cases and give an overview of the legal discussion in the EU and US. …
Persistent link: https://www.econbiz.de/10010492989
the period 1990-2002 to assess the effectiveness of European merger control. The basic idea is to relate announcement and … decision abnormal returns. Under a set of four maintained assumptions, merger control might be interpreted to be effective if … rents accruing due to the increased market power observed around the merger announcement are reversed by the antitrust …
Persistent link: https://www.econbiz.de/10008939212