Market value, market share, and mergers: Evidence from a panel of U.S. firms

Mahdiyeh Entezarkheir () and Anindya Sen ()

Managerial and Decision Economics, 2018, vol. 39, issue 4, 498-511

Abstract: Improving shareholder value has often been cited as a merger determinant. Because mergers create larger firms and less competition, they may increase shareholder value through higher market share and stock†market value. We investigate merger impacts on firms' stock†market value and market share. We construct panel data from 4 different data sources on public merging and non†merging U.S. manufacturing firms for 1980–2003. Instrumental variables and factors such as R&D, patents, and citations control for endogeneity. We find that mergers are positively correlated with stock†market value and market share.

Date: 2018
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/mde.2924

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:mgtdec:v:39:y:2018:i:4:p:498-511

Access Statistics for this article

Managerial and Decision Economics is currently edited by Antony Dnes

More articles in Managerial and Decision Economics from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().