The Determinants of Merger Waves: An International Perspective

34 Pages Posted: 29 Sep 2008

See all articles by Dennis C. Mueller

Dennis C. Mueller

University of Vienna - Center for Business Studies - Department of Economics

Klaus Peter Gugler

Vienna University of Economics and Business; European Corporate Governance Institute (ECGI)

Date Written: 2008

Abstract

One of the most conspicuous features of mergers is that they come in waves that are correlated with increases in share prices and price/earnings ratios. We use a natural way to discriminate between pure stock market influences on firm decisions and other influences by examining merger patterns for both listed and unlisted firms. If "real" changes in the economy drive merger waves, as some neoclassical theories of mergers predict, both listed and unlisted firms should experience waves. We find significant differences between listed and unlisted firms as predicted by behavioral theories of merger waves.

Keywords: Merger waves, listed versus non-listed firms, managerial discretion, overvaluation

JEL Classification: L2, G3

Suggested Citation

Mueller, Dennis C. and Gugler, Klaus, The Determinants of Merger Waves: An International Perspective (2008). ZEW - Centre for European Economic Research Discussion Paper No. 08-076. Available at SSRN: https://ssrn.com/abstract=1275293 or http://dx.doi.org/10.2139/ssrn.1275293

Dennis C. Mueller

University of Vienna - Center for Business Studies - Department of Economics ( email )

BWZ - BrĂ¼nner Str.
A-1010 Vienna
Austria
+43 1 4277 37484 (Phone)
+43 1 4277 37498 (Fax)

HOME PAGE: http://mailbox.univie.ac.at/~muelled2/

Klaus Gugler (Contact Author)

Vienna University of Economics and Business ( email )

Welthandelsplatz 1
Vienna, Wien 1020
Austria

HOME PAGE: http://www.wu.ac.at/iqv/mitarbeiter/gugler

European Corporate Governance Institute (ECGI)

c/o ECARES ULB CP 114
B-1050 Brussels
Belgium

HOME PAGE: http://www.ecgi.org

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