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  4. May 2023
  5. Mergers and Acquisitions under Common Ownership

Mergers and Acquisitions under Common Ownership

  • Miguel Antón
  • Florian Ederer
  • Mireia Giné
  • Bruno Pellegrino
AEA Papers and Proceedings
vol. 113, May 2023
(pp. 294-98)
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Abstract

We provide new facts about the cross section and evolution of mergers and acquisitions for US public firms. Using a general equilibrium model with a hedonic demand system and data on institutional ownership, we document that mergers are increasingly concentrated among firm pairs with a high degree of product market interaction and a moderate to high degree of common ownership. We estimate how much mergers have raised aggregate corporate profits and reduced consumer surplus and quantify how the anticompetitive effects of mergers are affected by common ownership and shareholder value maximization motives.

Citation

Antón, Miguel, Florian Ederer, Mireia Giné, and Bruno Pellegrino. 2023. "Mergers and Acquisitions under Common Ownership." AEA Papers and Proceedings, 113: 294-98. DOI: 10.1257/pandp.20231101

Additional Materials

JEL Classification

  • D22 Firm Behavior: Empirical Analysis
  • G32 Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
  • G34 Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance
  • G38 Corporate Finance and Governance: Government Policy and Regulation