Abstract

http://ssrn.com/abstract=2181837
 


 



An Empirical Investigation of the Mergers Decision Process in Australia


Robert V. Breunig


Crawford School of Public Policy

Flavio M. Menezes


University of Queensland - School of Economics

Kelvin Jui Keng Tan


University of Queensland - Business School; Financial Research Network (FIRN)

December 2012

Economic Record, Vol. 88, Issue 283, pp. 459-475, 2012

Abstract:     
In this article, we examine a database assembled from an Australian public register of 553 merger decisions taken between March 2004 and July 2008. Mergers may be accepted without public assessment, accepted in conjunction with publication of a Public Competition Assessment, or rejected. The public register contains qualitative information about the reasons given by the regulator for each decision. We estimate an ordered probit model, using these three possible outcomes, with the objective of gaining a better insight into the regulator’s decision‐making process. Our two major findings are: (i) the existence of entry barriers and the existence of undertakings are highly correlated with the regulator’s decision to closely scrutinise a merger proposal; and (ii) if we compare two decisions, one which does not mention entry barriers (or import competition) with a decision that does mention entry barriers (or import competition), then the latter is significantly more likely to be opposed than the former.

Number of Pages in PDF File: 17

JEL Classification: L4

Accepted Paper Series


Date posted: November 28, 2012  

Suggested Citation

Breunig, Robert V. and Menezes, Flavio M. and Tan, Kelvin Jui Keng, An Empirical Investigation of the Mergers Decision Process in Australia (December 2012). Economic Record, Vol. 88, Issue 283, pp. 459-475, 2012. Available at SSRN: http://ssrn.com/abstract=2181837 or http://dx.doi.org/10.1111/j.1475-4932.2012.00831.x

Contact Information

Robert V. Breunig (Contact Author)
Crawford School of Public Policy ( email )
7 Liversidge Street
Lennox Crossing
Canberra, ACT 0200
Australia
61261252148 (Phone)
HOME PAGE: http://https://crawford.anu.edu.au/crawford_people/content/staff/rbreunig.php
Flavio M. Menezes
University of Queensland - School of Economics ( email )
Brisbane, QLD 4072
Australia
Kelvin Jui Keng Tan
University of Queensland - Business School ( email )
Brisbane, Queensland 4072
Australia
Financial Research Network (FIRN) ( email )
C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

Feedback to SSRN


Paper statistics
Abstract Views: 165
Downloads: 0

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo3 in 0.390 seconds