Abstract

https://ssrn.com/abstract=269313
 
 

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Citations (458)



 


 



New Evidence and Perspectives on Mergers


Gregor Andrade


Harvard Business School - Finance Unit

Mark L. Mitchell


AQR Capital Management, LLC; CNH Partners

Erik Stafford


Harvard Business School - Finance Unit

January 2001

Harvard Business School Working Paper No. 01-070
HBS Finance Working Paper No. 01-070

Abstract:     
As in previous decades, merger activity clusters by industry during the 1990s. One particular kind of industry shock, deregulation, becomes a dominant factor, accounting for nearly half of the merger activity since the late 1980s. In contrast to the 1980s, mergers in the 1990s are mostly stock swaps, and hostile takeovers virtually disappear. Over our 1973 to 1998 sample period, the announcement-period stock market response to mergers is positive for the combined merging parties, suggesting that mergers create value on behalf of shareholders. Consistent with that, we find evidence of improved operating performance following mergers, relative to industry peers.

Number of Pages in PDF File: 32

JEL Classification: G3, L5


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Date posted: May 23, 2001  

Suggested Citation

Andrade, Gregor and Mitchell, Mark L. and Stafford, Erik, New Evidence and Perspectives on Mergers (January 2001). Harvard Business School Working Paper No. 01-070; HBS Finance Working Paper No. 01-070. Available at SSRN: https://ssrn.com/abstract=269313 or http://dx.doi.org/10.2139/ssrn.269313

Contact Information

Gregor M-M. Andrade
Harvard Business School - Finance Unit ( email )
Boston, MA 02163
United States
617-495-8018 (Phone)
617-496-8443 (Fax)
Mark L. Mitchell
AQR Capital Management, LLC ( email )
Greenwich, CT
United States

CNH Partners ( email )
Two Greenwich Plaza
1st Floor
Greenwich, CT 06830
United States
(203) 742-3001 (Phone)
Erik Stafford (Contact Author)
Harvard Business School - Finance Unit ( email )
Boston, MA 02163
United States
617-495-8064 (Phone)
617-496-7357 (Fax)
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