Do Incumbents’ Mergers Influence Entrepreneurial Entry? An Evaluation

33 Pages Posted: 9 Apr 2014

See all articles by Sumit K. Majumdar

Sumit K. Majumdar

University of Texas at Dallas - Department of Information Systems & Operations Management

Rabih Moussawi

Villanova University - Department of Finance; University of Pennsylvania - The Wharton School

Ulku Yaylacicegi

University of North Carolina (UNC) at Wilmington

Date Written: May 2014

Abstract

This analysis has evaluated the impact of mergers on new entrepreneurial firm entry in the territories of firms making up the local exchange sector of the United States telecommunications industry. An analysis of first and second mergers undertaken by the local exchange companies has revealed that where mergers occurred there was significantly lower entrepreneurial entry. The results have implications for policy, since the approval of mergers has been shown to lead to lower entrepreneurial entry where mergers occur, and the approval of mergers may serve to impede entrepreneurship. Hence, greater thought should be given to merger approvals so that entrepreneurship and the process of economic growth are not compromised as a result.

Suggested Citation

Majumdar, Sumit K. and Moussawi, Rabih and Yaylacicegi, Ulku, Do Incumbents’ Mergers Influence Entrepreneurial Entry? An Evaluation (May 2014). Entrepreneurship Theory and Practice, Vol. 38, Issue 3, pp. 601-633, 2014. Available at SSRN: https://ssrn.com/abstract=2423148 or http://dx.doi.org/10.1111/etap.12015

Sumit K. Majumdar (Contact Author)

University of Texas at Dallas - Department of Information Systems & Operations Management ( email )

SM 33
800 W Campbell
Richardson, TX 75080
United States
972-883-4786 (Phone)
972-883-4841 (Fax)

Rabih Moussawi

Villanova University - Department of Finance ( email )

800 E Lancaster Ave
Bartley Hall, 2051
Villanova, PA 19085
United States

HOME PAGE: http://www.homepage.villanova.edu/rabih.moussawi

University of Pennsylvania - The Wharton School ( email )

United States

Ulku Yaylacicegi

University of North Carolina (UNC) at Wilmington ( email )

601 South College Road
Wilmington, NC 28403
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
0
Abstract Views
210
PlumX Metrics