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The Triggers and Clustering Properties of Merger Waves

19 Pages Posted: 1 Aug 2013 Last revised: 11 Aug 2015

Florian Szücs

Vienna University of Economics and Business

Date Written: August 7, 2015

Abstract

This paper studies the triggers and the agglomeration of M&A activity within clusters constituted by time, market and industry. Based on almost 500,000 individual transactions, we find that industry factors play a significant role in triggering activity and that M&A agglomerates strongly across related industries. While clustering in time turns out to be insignificant, stock-market effects can be either an attracting or a repelling force, depending on the type of deal examined. This supports the view that merger waves are largely driven by industry shocks.

Keywords: merger wave, clustering, acquisitions, neoclassical, behavioral

JEL Classification: L2, G3

Suggested Citation

Szücs, Florian, The Triggers and Clustering Properties of Merger Waves (August 7, 2015). DIW Berlin Discussion Paper No. 1322. Available at SSRN: https://ssrn.com/abstract=2304279 or http://dx.doi.org/10.2139/ssrn.2304279

Florian Szücs (Contact Author)

Vienna University of Economics and Business ( email )

Welthandelsplatz 1
Vienna, Wien 1020
Austria

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