Abstract

http://ssrn.com/abstract=1958093
 


 



Endogenous Merger Waves in Vertically Related Industries


Zhiyong Yao


Fudan University - School of Management

Wen Zhou


University of Hong Kong - School of Business

October 1, 2011

NET Institute Working Paper No. 11-34

Abstract:     
We study merger waves in vertically related industries where firms can engage in both vertical and horizontal mergers. Even though any individual merger would have been profitable, firms may refrain from merging for fear of negative impacts from other mergers. When they do merge, however, they always merge in waves, which is either vertical or horizontal depending on the relative intensity of double markup and horizontal competitions in the two industries. Finally, merger waves may happen with or without any fundamental change in the underlying economic conditions.

Number of Pages in PDF File: 25

Keywords: merger wave, horizontal mergers, vertical mergers, stable market structure

JEL Classification: L13, L42, D43

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Date posted: November 24, 2011 ; Last revised: November 30, 2011

Suggested Citation

Yao, Zhiyong and Zhou, Wen, Endogenous Merger Waves in Vertically Related Industries (October 1, 2011). NET Institute Working Paper No. 11-34. Available at SSRN: http://ssrn.com/abstract=1958093 or http://dx.doi.org/10.2139/ssrn.1958093

Contact Information

Zhiyong Yao
Fudan University - School of Management ( email )
No. 670, Guoshun Road
No.670 Guoshun Road
Shanghai, 200433
China
Wen Zhou (Contact Author)
University of Hong Kong - School of Business ( email )
Meng Wah Complex
Pokfulam Road
Hong Kong
China
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