Mergers and Investments: Where Do We Stand?

Yassine Lefouili and Leonardo Madio

No 25-1617, TSE Working Papers from Toulouse School of Economics (TSE)

Abstract: In this paper, we review recent studies on the impact of mergers on investments. First, we examine how mergers among competing incumbents influence firms' incentives to develop new products and undertake cost-reducing or quality-enhancing investments. Second, we analyze how an incumbent's acquisition of an innovative entrant affects the investment incentives of both parties. Third, we discuss the effects of vertical mergers on the investment decisions of both upstream and downstream firms. Finally, we outline a few directions for future research.

Keywords: Competition; Investments; Innovation; Mergers, Entry (search for similar items in EconPapers)
JEL-codes: D43 L13 L40 (search for similar items in EconPapers)
Date: 2025-02
New Economics Papers: this item is included in nep-com, nep-cta, nep-ind, nep-inv, nep-mic and nep-reg
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Persistent link: https://EconPapers.repec.org/RePEc:tse:wpaper:130332

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