A note on merger and acquisition evaluation

• Autores: Benjamin Furlan, Harald Oberhofer, Hannes Winner
• Localización: Industrial and Corporate Change, ISSN-e 1464-3650, Vol. 25, Nº. 3, 2016, págs. 447-455
• Idioma: inglés
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• Resumen

  • This note proposes the continuous treatment approach as a valuable alternative to propensity score matching for evaluating economic effects of merger and acquisitions (M&As). This framework allows considering the variation in treatment intensities explicitly, and it does not call for an arbitrary definition of cutoff values in traded ownership shares to construct a binary treatment indicator. We demonstrate the usefulness of this approach using data from European M&As and by relying on the example of post-M&A employment effects. The empirical exercise reveals some heterogeneities over the whole distribution of acquired ownership shares and across different types of M&As and country groups.