The Influence of Industry Concentration on Merger Motives
Although the influence of market structure on corporate performance and merger success has long been outlined by the industrial organization theory, only little is known about its specific impact on merger motives. Following recommendations of merger motive research, we examine stock price reactions of merging firms and rival companies to transaction announcements to generate an understanding of how industry concentration influences merger decisions and merger motives of firms.
KeywordsAbnormal Return Event Window Cumulative Abnormal Return Industry Concentration Concentrate Industry
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