Evaluating Mergers in the Australian Petroleum Industry

13 Pages Posted: 17 Feb 2003

Abstract

We study the effects of mergers in the Australian petroleum industry during 1980-1994. The effect on the profitability of both the merging and non-merging firms is estimated. There is robust evidence that mergers have been associated with a decrease in profitability for all firms. Thus, the results are not consistent with the view that mergers have acted primarily to increase market power or that they have acted primarily to increase efficiency. There is some support for the more complicated view that mergers have both increased market power and decreased efficiency, with the latter effect dominating.

Suggested Citation

Hyde, Charles E., Evaluating Mergers in the Australian Petroleum Industry. Economic Record, Vol. 78, pp. 299-311, 2002. Available at SSRN: https://ssrn.com/abstract=324675

Charles E. Hyde (Contact Author)

Independent

No Address Available
United States

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