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A Note on Merger and Acquisition Evaluation

Furlan, Benjamin and Oberhofer, Harald and Winner, Hannes (2016) A Note on Merger and Acquisition Evaluation. Industrial and Corporate Change (ICC), 25 (3). pp. 447-455. ISSN 1464-3650

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Abstract

This note proposes the continuous treatment approach as a valuable alternative to propensity score matching for evaluating economic effects of merger and acquisitions (M&As). This framework allows considering the variation in treatment intensities explicitly, and it does not call for an arbitrary definition of cutoff values in traded ownership shares to construct a binary treatment indicator. We demonstrate the usefulness of this approach using data from European M&As and by relying on the example of post-M&A employment effects. The empirical exercise reveals some heterogeneities over the whole distribution of acquired ownership shares and across different types of M&As and country groups.

Item Type: Article
Additional Information: Financial support from the "Oesterreichische Nationalbank" (OeNB, grant number 14383) is gratefully acknowledged.
Keywords: Merger and acquisition evaluation, continuous treatment models, generalized propensity score matching, employment effects.
Classification Codes: JEL C21, G34, L25
Divisions: Departments > Volkswirtschaft > Internationale Wirtschaft
Version of the Document: Accepted for Publication
Depositing User: Gertraud Novotny
Date Deposited: 08 Aug 2017 13:19
Last Modified: 07 Sep 2017 11:21
Related URLs:
FIDES Link: https://bach.wu.ac.at/d/research/results/73535/
URI: http://epub.wu.ac.at/id/eprint/5692

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