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Profissional Documentos
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I. Introduction
II. Background
II. 1. Literature review
Table 1. Abnormal returns to the merging firms and their rivals as predicted under the
market power and economic efficiency hypotheses
B. Probability-decreasing events
collusion hypothesis
productivity effect
information effect
II. 2. Overview of the automobile sector
Figure 1. Porter’s five forces model
Potential entrants
Substitutes
II. 3. Hypotheses emerging from the literature
collusion
predatory pricing
supplier pressure hypothesis
III. Data
III.1. Data source and sample selection
Table 3. Summary statistics about sample operations by SIC code
Total 595
III. 2. Method used to form customers, suppliers and competitors portfolio per
operations
IV. M&a operations within the car industry and associated horizontal
and vertical effects
IV. 1. Methods
α β ε
α β
ε
Table 4. Market Model Regression Summary Statistics and Specification Tests
= ∑ ∑ε
τ= − =
+τ
rT
T m − rm
T T
[ T ]=Tσ + +
+ T − Cov[Rt Rt − ]
U U Var rm
U rm
Var(rm) rmT
T σ
[ − ]
IV. 2. Results
Table 5. Price Reaction to the Initial Merger Announcement
Bidders (N=64)
Targets (N=34)
Combinations (N=23)
Competitors (N=67)
Suppliers (N=67)
Customers (N=69)
Figure 2. Initial announcement CAAR
Panel A
Merger Announcement
6.00
5.00
4.00
CAAR (%)
3.00
2.00
1.00
0.00
-1.00
-5 -4 -3 -2 -1 0 1 2 3 4 5
Date-Announcement
Panel B
Merger Announcement
0.4
0.3
0.2
0.1
0
CAAR (%)
-0.1
-0.2
-0.3
-0.4
-0.5
-0.6
-0.7
-5 -4 -3 -2 -1 0 1 2 3 4 5
Date-Announcement
V. Conclusion
References
Economic
Policy
Journal
of finance
Journal of Financial
Economics
Journal of
Financial Economics .
Journal of
Financial Economics
Journal of Finance
Journal of
Financial Economics
Journal of
Economic Literature
RAND Journal of
Economics
Journal
of Corporate Finance
Management Science
Journal
of Financial Economics