Gugler, Klaus and Mueller, Dennis C. and Weichselbaumer, Michael
The determinants of merger waves: An international perspective.
International Journal of Industrial Organization, 30 (1).
One of the most conspicuous features of mergers is that they come in waves that are
correlated with increases in share prices and price/earnings ratios. We use a natural way to
discriminate between pure stock market influences on firm decisions and other influences by
examining merger patterns for both listed and unlisted firms. If "real" changes in the
economy drive merger waves, as some neoclassical theories of mergers predict, both listed
and unlisted firms should experience waves. We find significant differences between listed
and unlisted firms as predicted by behavioral theories of merger waves. (author's abstract)