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Evidence on economies of scale in local public service provision: A meta‐analysis

Juan Luis Gómez‐Reino, Santiago Lago‐Peñas, Jorge Martinez‐Vazquez

Journal of Regional Science > 63 > 4 > 793 - 819

The standard theory of optimal jurisdictional size hinges on the existence of economies of scale in the provision of local public goods and services. However, despite its relevance for forced local amalgamation programs and related policies, the empirical evidence on the existence of such economies of scale remains elusive. The main goal of this paper is to produce an updated and comprehensive quantitative...

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Acquisitions, product variety, and distribution in the U.S. craft beer industry

Wesley Blundell, Kyle Wilson

Economic Inquiry > 61 > 4 > 1053 - 1076

Though antitrust authorities have historically focused on prices in merger analyses, there is now growing interest in the impact of mergers on non‐price outcomes. In this paper, we examine the effect of horizontal mergers on product variety in the U.S. beer industry. Our difference‐in‐differences analyses provide evidence that acquired firms increase variety available to consumers by expanding into...

article

Cross‐border cooperation: A response to the challenges facing agri‐food cooperatives in Southern European countries

Elena Meliá‐Martí, Deolinda Meira, José Corberá Martínez, Rui Bertuzi

Annals of Public and Cooperative Economics > 94 > 3 > 981 - 1006

All agri‐food cooperatives share common interests, irrespective of their geographical borders, which should encourage them to undertake inter‐cooperation processes as well as to set up transnational cooperatives. This paper has two objectives. The first is to analyze Spanish and Portuguese cooperative regulations and the Statute for a European Cooperative Society to define how to embark on these processes...

article

Big Med's Spread

LAWTON ROBERT BURNS, MARK V. PAULY

The Milbank Quarterly > 101 > 2 > 287 - 324

Context There is a growing trend of combinations among hospital systems that operate in different geographic markets known as cross‐market mergers. Economists have analyzed these broader systems in terms of their anticompetitive behavior and pricing power over insurers. This paper evaluates the benefits advanced by these new hospital systems that speak to a different set of issues not usually...

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Mergers and innovation portfolios

José Luis Moraga‐González, Evgenia Motchenkova, Saish Nevrekar

The RAND Journal of Economics > 53 > 4 > 641 - 677

This article studies mergers in markets where firms invest in a portfolio of research projects of different profitability and social value. The investment of a firm in one project imposes both a negative business‐stealing and a positive business‐giving externality on the rival firms. We show that when the project that is relatively more profitable for the firms appropriates a larger (smaller) fraction...

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Effects of customer horizontal merger on supplier capital structure decisions

Mauro Oliveira, Palani‐Rajan Kadapakkam

International Review of Finance > 21 > 4 > 1464 - 1491

We study the impact of a significant customer's merger on the capital structure of suppliers using a sample of U.S. firms that merged with rivals in the same industry. The bargaining power theory of capital structure predicts that suppliers will increase debt to decrease the surplus available for negotiation when facing customers that gain buying power by increasing their size through mergers. We...

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Dynamic model of beer pricing and buyouts

Timothy J. Richards, Bradley J. Rickard

Agribusiness > 37 > 4 > 685 - 712

The beer industry in the United States is in a period of dramatic transformation. Major breweries are acquiring much smaller craft breweries in an attempt to purchase growth, but it is not clear whether these acquisitions are economically viable. In this paper, we study the impact of craft brewery acquisitions on retail beer prices, and firm profitability in a dynamic, Markov‐perfect equilibrium pricing...

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Upward pricing pressure in mergers of capacity‐constrained firms

Daniel Greenfield, Jeremy A. Sandford

Economic Inquiry > 59 > 4 > 1723 - 1747

Merging firms regularly argue that mergers involving capacity‐constrained firms are unlikely to be anticompetitive, because a capacity‐constrained firm does not represent a meaningful competitive constraint on its rivals. We construct a modified notion of upward pricing pressure called ccGUPPI, or capacity‐constrained GUPPI, which accounts for upward pricing pressure from binding capacity constraints,...

article

Stock Markets and Competition: What Does A Concentrated Stock Market Tell Us About Competition In The Economy?

Adam Triggs

Economic Papers: A journal of applied economics and policy > 40 > 3 > 194 - 208

The paper presents analysis of market concentration in Australia’s stock market and explores what this might tell us about the state of competition in the real economy. It finds that, on most measures, Australia’s stock market is highly concentrated but is becoming less concentrated over time. Many studies, including leading books on competition policy, have used stock market concentration as a proxy...

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The information content of target price forecasts: Evidence from mergers and acquisitions

Tuan Ho, Ruby Brownen‐Trinh, Fangming Xu

Journal of Business Finance & Accounting > 48 > 5-6 > 1134 - 1171

This paper investigates the informativeness and value relevance of analyst target prices in the context of mergers and acquisitions. Our results indicate that firms with high 12‐month ahead target prices relative to current stock prices are more likely to become a takeover target and offer premium, and acquirers’ announcement returns are positively associated with firms’ target price premium. We also...

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Are outside director trades informative? Evidence from acquiring firms

Rachel E. Gordon

International Review of Finance > 21 > 2 > 447 - 477

I show that nonroutine trades by acquirer outside directors premerger contain a significant amount of private information and these directors trade opportunistically on the information. I find that outside directors sell shares before less valuable deals and purchase shares before more value enhancing deals. Mergers with selling (buying) beforehand are associated with 22% lower (41% higher) announcement...

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For Rural Hospitals That Merged, Inpatient Charges Decreased and Outpatient Charges Increased: A Pre‐/Post‐Comparison of Rural Hospitals That Merged and Rural Hospitals That Did Not Merge Between 2005 and 2015

Dunc Williams, G. Mark Holmes, Paula H. Song, Kristin L. Reiter, more

The Journal of Rural Health > 37 > 2 > 308 - 317

Purpose To determine whether inpatient and outpatient charges changed at rural hospitals after a merger. Methods Hospital mergers were derived from proprietary Irving Levin Associates data through manual review and validation. Hospital‐level characteristics were derived from HCRIS, CMS Impact File Hospital Inpatient Prospective Payment System, Hospital MSA file, AHRF, and US Census data. A difference‐in‐differences...

article

Jurisdiction size and local government effectiveness: Assessing the effects of municipal amalgamations on performance

JENS BLOM‐HANSEN, KURT HOULBERG, SØREN SERRITZLEW

European Journal of Political Research > 60 > 1 > 153 - 174

The optimal jurisdiction size has been debated since Plato and Aristotle. A large literature has studied economic and democratic scale effects, but we have almost no knowledge of the effects of jurisdiction size on the effectiveness of local services. This is due to two methodological problems. First, selection bias and reverse causality often render change in jurisdiction size an endogenous variable...

article

CROSS-BORDER MERGERS AND ACQUISITIONS IN THE CONTEXT OF EVALUATION OF THE ATTRIBUTES OF THEIR FUTURE IMPLEMENTATION

Jaroslava Hečková, Zuzana Birknerová, Alexandra Chapčáková, Lucia Zbihlejová

Ekonomický časopis (Journal of Economics) > 2021 > 69 > 2 > 204 – 219

Identification and specification of the key attributes influencing the considerations about implementation of a future cross-border merger or acquisition (M&A) are the main objective of the paper. Based on the views of managers from 165 international corporations located in 45 EEA countries that had previously been the subject of a cross-border M&A, significant attributes relating to their...

article

Termination fees and bilaterally efficient merger contracts

Georgios N. Farfaras, Peter B. Morgan

Canadian Journal of Administrative Sciences / Revue Canadienne des Sciences... > 37 > 3 > 366 - 376

We present a simple model of exchange in which mutual gains from trade motivate the use of termination fees in merger contracts. The inclusion of a termination fee permits bilaterally efficient merger contracts that make merger consummation more likely and result in higher merger payoffs for both the bidder and the target compared to contracts without termination fees. Introducing risk aversion for...

article

Does the quality of acquisitions inform bond rating revisions?

Qi Chang, Harjeet Singh Bhabra, Gurmeet Singh Bhabra

Accounting & Finance > 60 > 1 > 149 - 182

A bond rating upgrade (downgrade) is more likely when preceded by acquisitions that meet with positive (negative) announcement‐period abnormal returns suggesting that decisions of rating agencies are partly influenced by the quality of investments undertaken by companies. Parsing the sample along takeover motives reveals that rating upgrades are more likely in value‐creating acquisitions motivated...

article

What, when, and who: Manager involvement in predicting employee resistance to acquisition integration

David R. King, Florian Bauer, Qingxiong (Derek) Weng, Svante Schriber, more

Human Resource Management > 59 > 1 > 63 - 81

Applying sensemaking research to acquisition integration, we outline factors that influence employee resistance to acquisitions. While integration is widely viewed as important to acquisition outcomes, there is limited systematic study of how employees react to the integration process. Using survey data from Chinese acquirers and applying partial least squares structural equation modeling, we examine...

article

PREDICTION OF SYNERGIES IN MERGERS

Mária Režňáková, Jan Pěta, Michal Karas

Ekonomický časopis (Journal of Economics) > 2020 > 68 > 2 > 168 – 187

In this paper we present a method of calculating the value of synergy resulting from mergers between private companies as well as a model for the prediction of potential synergy values in contemplated mergers (M&A deals). We first examined the process of determining the value of a synergy. Since we analysed mergers involving private mechanical engineering companies, we used the discounted capital...

article

Determinants of Companies’ Financial Performance Following M&A Transactions in Poland

Marcin Ocieszak

Central European Management Journal > 2020 > 28(4) > 51-66

Purpose: This study identifies and analyzes the factors that impact the financial performance of companies after a merger and acquisition transaction. Methodology: As many as 130 Polish market observations were analyzed with an OLS regression model to verify the research hypotheses. Results: The results reveal that the company’s size, performance before the transaction, and its international nature...

article

Into the Grey Zone. What Do We (Don’t) Know About Types of Concentrations Between Undertakings Under EU law After Austria Asphalt?

Adrian Bielecki

Yearbook of Antitrust and Regulatory Studies > 2019 > 13 > 21 > 219-236

In Austria Asphalt, the Court of Justice issued the first preliminary ruling related to the EU merger control regime. In Advocate General Kokott’s words, the Austrian Supreme Court asked the Court of Justice to answer the fundamental question of what constitutes a concentration between undertakings within Article 3 of the EUMR. The Court of Justice held that Article 3 of the EUMR must be interpreted...

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Search results

Evidence on economies of scale in local public service provision: A meta‐analysis

Acquisitions, product variety, and distribution in the U.S. craft beer industry

Cross‐border cooperation: A response to the challenges facing agri‐food cooperatives in Southern European countries

Big Med's Spread

Mergers and innovation portfolios

Effects of customer horizontal merger on supplier capital structure decisions

Dynamic model of beer pricing and buyouts

Upward pricing pressure in mergers of capacity‐constrained firms

Stock Markets and Competition: What Does A Concentrated Stock Market Tell Us About Competition In The Economy?

The information content of target price forecasts: Evidence from mergers and acquisitions

Are outside director trades informative? Evidence from acquiring firms

For Rural Hospitals That Merged, Inpatient Charges Decreased and Outpatient Charges Increased: A Pre‐/Post‐Comparison of Rural Hospitals That Merged and Rural Hospitals That Did Not Merge Between 2005 and 2015

Jurisdiction size and local government effectiveness: Assessing the effects of municipal amalgamations on performance

CROSS-BORDER MERGERS AND ACQUISITIONS IN THE CONTEXT OF EVALUATION OF THE ATTRIBUTES OF THEIR FUTURE IMPLEMENTATION

Termination fees and bilaterally efficient merger contracts

Does the quality of acquisitions inform bond rating revisions?

What, when, and who: Manager involvement in predicting employee resistance to acquisition integration

PREDICTION OF SYNERGIES IN MERGERS

Determinants of Companies’ Financial Performance Following M&A Transactions in Poland

Into the Grey Zone. What Do We (Don’t) Know About Types of Concentrations Between Undertakings Under EU law After Austria Asphalt?

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