Mergers and acquisitions: An experimental analysis of synergies, externalities and dynamics

Review of Finance

Volumn 8, Issue 4, 2004, Pages 481-514

  Croson, Rachel T A ^a   Gomes, Armando ^a   McGinn, Kathleen L ^b   Nöth, Markus ^c  

^a UNIVERSITY OF PENNSYLVANIA   (United States)

^b HARVARD BUSINESS SCHOOL   (United States)

^c UNIVERSITY OF MANNHEIM   (Germany)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 23944459989     PISSN: 15723097     EISSN: 1573692X     Source Type: Journal    
DOI: 10.1007/s10679-004-6265-z     Document Type: Review

References (42)

1. Agrawal, A. and Jaffe, J. F. (1995) Does section 16b deter insider trading by target managers'?, Journal of Financial Economics 39, 295-395.
2. Andrade, G., Mitchell, M., and Stafford, E. (2001) New evidence and perspectives on mergers, Journal of Economic Perspectives 15, 103-120.
3. Banerjee, A. and Eckard, E. W. (1998) Are mega-mergers anticompetitive? Evidence from the first great merger wave, RAND Journal of Economics 29, 803-827.
4. Bange, M. M. and Mazzeo, M. A. (2004) Board composition, board effectiveness, and the observed form of takeover, Review of Financial Studies 17, 1185-1215.
5. Billett, M. T., King, T.-H. D., and Mauer, D. C. (2004) Bondholder wealth effects in mergers and acquisitions: New evidence from the 1980s and 1990s, Journal of Finance 59, 107-135.
6. Bolton, G. E., Chatterjee, K., and McGinn, K. L. (2003) How communication links influence coalitional bargaining: A laboratory investigation, Management Science 49, 583-598.
7. Brune, S. (1983) On the regions of linearity for the nucleolus and their computation, International Journal of Game Theory 12, 47-80.
8. Burkart, M. (1995) Initial shareholdings and overbidding in takeover contests, Journal of Finance 50, 1491-1515.
9. Cadsby, C. B. and Maynes, E. (1998) Corporate takeovers in the laboratory when shareholders own more than one share, Journal of Business 71, 537-572.
10. Croson, R. T. (1996) Information in ultimatum games: An experimental study, Journal of Economic Behavior & Organization 30, 197-212.
11. Deneckere, R. and Davidson, C. (1985) Incentives to form coalitions with bertrand competition, RAND Journal of Economics 16, 473-486.
12. Eckbo, B. E. (1983) Horizontal mergers, collusion, and stockholder wealth, Journal of Financial Economics 11, 241-273.
13. Farrell, J. and Shapiro, C. (1990) Horizontal mergers: An equilibrium analysis, American Economic Review 80, 107-126.
14. Franks, J., Harris, R., and Titman, S. (1991) The postmerger share-price performance of acquiring firms, Journal of Financial Economics 29, 81-96.
15. Friedman, D. and Sunder, S. (1994) Experimental Methods: A Primer for Economists, Cambridge University Press, New York.
16. Giammarino, R. M. and Heinkel, R. L. (1986) A model of dynamic takeover behavior, Journal of Finance 41, 465-480.
17. Gomes, A. (2003a) Multilateral contracting with externalities, Econometrica forthcoming.
18. Gomes, A. (2003b) Valuations and dynamics of negotiations, Wharton School Working Paper, http://finance.wharton.upenn.edu/~ gomes/VDN.pdf.
19. Hamaguchi, Y., Hirota, S., Kawagoe, T., and Saijo, T. (2002) Does the free-rider-problem occur in corporate takeovers? Evidence from laboratory markets, Osaka University - Institute of Social and Economic Research, Working Paper, 512 pp.
20. Kahan, J. and Rapoport, A. (1984) Theories of Coalition Formation, Lawrence Erlbaum Associates, London.
21. Kale, J. R. and Noe, T. H. (1997) Unconditional and conditional takeover offers: Experimental evidence, Review of Financial Studies 10, 735-766.
22. Kohlberg, E. (1971) On the nucleolus of a characteristic function game, SIAM Journal of Applied Mathematics 20, 62-66.
23. Lindqvist, T. and Stennek, J. (2001) The insiders' dilemma: An experiment on merger formation, mimeo, IUI and Stockholm University.
24. Lucas, W. F. and Thrall, R. M. (1963) n-Person games in partition function form, Naval Research Logistics Quarterly 10, 281-298.
25. Maschler, M. (1992) The bargaining set, kernel, and nucleolus, in R. Aumann and S. Hart (eds.), Handbook of Game Theory, 1st edn, Elsevier Science Publishers B.V., pp. 592-667.
26. McAfee, R. P. and Williams, M. A. (1992) Horizontal mergers and antitrust policy, Journal of Industrial Economics 40, 181-187.
27. Michener, H. A. and Myers, D. J. (1998) An empirical comparison of probabilistic coalition structure theorems in 3-person sidepayment games, Theory and Decision 45, 37-82.
28. Mitchell, M. L. and Mulherin, J. H. (1996) The impact of industry shocks on takeover and restructering activity, Journal of Financial Economics 41, 193-229.
29. Myerson, R. B. (1977) Values of games in a partition function form, International Journal of Game Theory 6, 23-31.
30. Rhodes-Kropf, M., Robinson, D. T., and Viswanathan, S. (2003) Valuation waves and merger activity: The empirical evidence, Journal of Fincial Economics forthcoming.
31. Rhodes-Kropf, M. and Viswanathan, S. (2004) Valuation waves and merger activity, Journal of Finance 59(6), forthcoming.
32. Roll, R. (1986) The hubris hypothesis of corporate takeovers, Journal of Business 59, 197-216.
33. Rubinstein, A. (1982) Perfect equilibria in a bargaining model, Econometrica 50, 97-109.
34. Schmeidler, D. (1969) The nucleolus of a characteristic function game, SIAM Journal of Applied Mathematics 17, 1163-1170.
35. Shapley, L. (1953) A value for n-person games, in H. Kuhn and A. Tucker (eds.), Contributions to the Theory of Games, Vol. 2, pp. 307-317, Princeton University Press, Princeton.
36. Shleifer, A. and Vishny, R. W. 2003, Stock market driven acquisitions, Journal of Financial Economics 70, 295-311.
37. Singh, R. (1998) Takeover bidding with toeholds: The case of the owner's curse, Review of Financial Studies 11, 679-704.
38. Song, M. H. and Walkling, R. A. (2000) Abnormal returns to rivals of acquisition targets: A test of the 'acquisition probability hypothesis', Journal of Financial Economics 55, 143-171.
39. Stigler, G. J. (1950) Monopoly and oligopoly by merger, American Economic Review (Papers & Proceedings), 40, 23-34.
40. Stillman, R. (1983) Examining antitrust policy toward horizontal mergers, Journal of Financial Economics 11, 225-240.
41. Stulz, R. M., Walkling, R. A., and Song, M. H. (1990) The distribution of target ownership and the division of gains in successful takeovers, Journal of Finance 45, 817-833.
42. Von Neumann, J. and Morgenstern, O. (1944) Theory of Games and Economic Behavior, Princeton University Press, Princeton.