The Anticompetitive Effect of Minority Share Acquisitions: Evidence from the Introduction of National Leniency Programs
- (pp. 366-410)
Abstract
We address the growing concern that minority shareholding (MS) in rival firms may lessen competition, using the introduction of national leniency programs (LPs) as a shock that destabilizes collusive agreements. Based on data from 63 countries, we find a large and significant immediate increase in domestic horizontal MS acquisitions once an LP is introduced but only in countries where the LP is deemed to be effective. There is no effect on non-horizontal or cross-border MS acquisitions. Our findings suggest that firms may use MS acquisitions to either stabilize collusive agreements or soften competition in the event that collusion breaks down.Citation
Heim, Sven, Kai Hüschelrath, Ulrich Laitenberger, and Yossi Spiegel. 2022. "The Anticompetitive Effect of Minority Share Acquisitions: Evidence from the Introduction of National Leniency Programs." American Economic Journal: Microeconomics, 14 (1): 366-410. DOI: 10.1257/mic.20190117Additional Materials
JEL Classification
- G34 Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance
- K21 Antitrust Law
- L12 Monopoly; Monopolization Strategies
- L41 Monopolization; Horizontal Anticompetitive Practices
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