Abstract

http://ssrn.com/abstract=1095684
 
 

References (54)



 
 

Citations (5)



 


 



The Economic Impact of Merger Control Legislation


Elena Carletti


Bocconi University - Department of Finance; European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS)

Philipp Hartmann


European Central Bank (ECB); Centre for Economic Policy Research (CEPR) - International Macroeconomics

Steven Ongena


University of Zurich and SFI

January 13, 2015

FDIC Center for Financial Research Working Paper No. 2008-12
TILEC Discussion Paper No. 2008-006

Abstract:     
We investigate the impact of legislative reforms in merger control legislation in nineteen industrial countries between 1987 and 2004. We find that strengthening merger control decreases the stock prices of non-financial firms, while increasing those of banks. Cross sectional regressions show that the discretion embedded in the supervisory control of bank mergers is a major determinant of the positive bank stock returns. One explanation is that merger control introduces “checks and balances” that mitigates the potential abuse and wasteful enforcement of supervisory control in the banking sector.

Number of Pages in PDF File: 51

Keywords: mergers and acquisitions, competition policy, legal institutions, financial regulation

JEL Classification: G21, G28, D4


Open PDF in Browser Download This Paper

Date posted: February 20, 2008 ; Last revised: January 13, 2015

Suggested Citation

Carletti, Elena and Hartmann, Philipp and Ongena, Steven, The Economic Impact of Merger Control Legislation (January 13, 2015). FDIC Center for Financial Research Working Paper No. 2008-12; TILEC Discussion Paper No. 2008-006. Available at SSRN: http://ssrn.com/abstract=1095684 or http://dx.doi.org/10.2139/ssrn.1095684

Contact Information

Elena Carletti
Bocconi University - Department of Finance ( email )
Via Roentgen 1
Milano, MI 20136
Italy
European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS) ( email )
Villa La Fonte, via delle Fontanelle 18
50016 San Domenico di Fiesole
Florence, Florence 50014
Italy
Philipp Hartmann
European Central Bank (ECB) ( email )
Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany
(49 69) 1344 7356 (Phone)
(49 69) 1344 8553 (Fax)
Centre for Economic Policy Research (CEPR) - International Macroeconomics
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
Steven R. G. Ongena (Contact Author)
University of Zurich and SFI ( email )
Plattenstrasse 14
Zürich, 8032
Switzerland
Feedback to SSRN


Paper statistics
Abstract Views: 3,013
Downloads: 286
Download Rank: 67,326
References:  54
Citations:  5

© 2015 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo5 in 0.297 seconds