Horizontal mergers and heterogeneous firm investments: evidence from the United States

IF 2.1 2区经济学 Q2 BUSINESS, FINANCE

Journal of Empirical Finance Pub Date : 2024-01-01 DOI:10.1016/j.jempfin.2023.101464

Dongxu Li

引用次数: 0

Abstract

I find on average firms respond to a horizontal merger by investing less in PP&E, labor, and R&D. There is notable heterogeneity among the non-merging rivals. The laggard rivals reduce investments in PP&E, labor, and R&D while the neck-and-neck rivals do the opposite. There is an insignificant change for the leader rivals. These results support Aghion et al. (2005) on the inverted-U relationship between competition and innovation. Also, I show evidence that financial constraints and innovativeness are two factors that drive rivals’ heterogeneous responses. This empirical study sheds light upon the pattern in which horizontal mergers shape industry evolvement.

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横向兼并与异质企业投资：来自美国的证据

我发现，企业对横向兼并的平均反应是减少在 PP&E、劳动力和研发方面的投资。非兼并对手之间存在显著的异质性。落后的竞争对手会减少在 PP&E、劳动力和研发方面的投资，而并驾齐驱的竞争对手则相反。领先者的变化并不显著。这些结果支持了 Aghion 等人（2005 年）关于竞争与创新之间倒 U 型关系的观点。此外，我还证明了财务约束和创新能力是驱动竞争对手做出异质性反应的两个因素。这项实证研究揭示了横向兼并影响行业发展的模式。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Empirical Finance Multiple-

CiteScore

3.40

自引率

3.80%

发文量

期刊介绍： The Journal of Empirical Finance is a financial economics journal whose aim is to publish high quality articles in empirical finance. Empirical finance is interpreted broadly to include any type of empirical work in financial economics, financial econometrics, and also theoretical work with clear empirical implications, even when there is no empirical analysis. The Journal welcomes articles in all fields of finance, such as asset pricing, corporate finance, financial econometrics, banking, international finance, microstructure, behavioural finance, etc. The Editorial Team is willing to take risks on innovative research, controversial papers, and unusual approaches. We are also particularly interested in work produced by young scholars. The composition of the editorial board reflects such goals.