EconStor >
Bank of Canada, Ottawa >
Bank of Canada Working Papers >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/53795
  

Full metadata record

DC FieldValueLanguage
dc.contributor.authorSecrieru, Oanaen_US
dc.contributor.authorVigneault, Marianneen_US
dc.date.accessioned2011-12-15T12:55:58Z-
dc.date.available2011-12-15T12:55:58Z-
dc.date.issued2009en_US
dc.identifier.urihttp://hdl.handle.net/10419/53795-
dc.description.abstractThe purpose of our paper is to examine the profitability and social desirability of both domestic and foreign mergers in a location-quantity competition model, where we allow for the possibility of hollowing-out of the target firm. We refer to hollowing-out as the situation where the target firm is shut down following a merger with a domestic or foreign acquirer. Our analysis shows that mergers have ambiguous effects on the profitability of merged firms and on social welfare. Hollowing-out occurs in very few instances in our framework. One such instance is the case of firms located side-by-side in the same cluster and only if it is very costly to transfer the more efficient technology of the acquirer to the domestic target firm. This happens regardless of the origin of the acquirer, domestic or foreign. We also show that there are instances when a cross-border merger with hollowing out is not profitable but it is socially desirable.en_US
dc.language.isoengen_US
dc.publisherBank of Canada Ottawaen_US
dc.relation.ispartofseriesBank of Canada Working Paper 2009,30en_US
dc.subject.jelD43en_US
dc.subject.jelG34en_US
dc.subject.jelL41en_US
dc.subject.jelL13en_US
dc.subject.ddc330en_US
dc.subject.keywordEconomic modelsen_US
dc.subject.keywordInternational topicsen_US
dc.subject.keywordMarket structure and pricingen_US
dc.subject.stwFusionen_US
dc.subject.stwÜbernahmeen_US
dc.subject.stwMultinationales Unternehmenen_US
dc.subject.stwDirektinvestitionen_US
dc.subject.stwUnternehmensentwicklungen_US
dc.subject.stwWohlfahrtseffekten_US
dc.subject.stwTheorieen_US
dc.titleCross-border mergers and hollowing-outen_US
dc.typeWorking Paperen_US
dc.identifier.ppn618953655en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:Bank of Canada Working Papers

Files in This Item:
File Description SizeFormat
618953655.pdf367.67 kBAdobe PDF
No. of Downloads: Counter Stats
Show simple item record
Download bibliographical data as: BibTeX

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.