Mergers and Acquisitions under Common Ownership

Miguel Antón, Florian Ederer, Mireia Giné and Bruno Pellegrino

AEA Papers and Proceedings, 2023, vol. 113, 294-98

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.

JEL-codes: D22 G32 G34 G38 (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1257/pandp.20231101

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