Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/53795 
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dc.contributor.authorSecrieru, Oanaen
dc.contributor.authorVigneault, Marianneen
dc.date.accessioned2011-12-15T12:55:58Z-
dc.date.available2011-12-15T12:55:58Z-
dc.date.issued2009-
dc.identifier.pidoi:10.34989/swp-2009-30en
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
dc.language.isoengen
dc.publisher|aBank of Canada |cOttawaen
dc.relation.ispartofseries|aBank of Canada Working Paper |x2009-30en
dc.subject.jelD43en
dc.subject.jelG34en
dc.subject.jelL41en
dc.subject.jelL13en
dc.subject.ddc330en
dc.subject.keywordEconomic modelsen
dc.subject.keywordInternational topicsen
dc.subject.keywordMarket structure and pricingen
dc.subject.stwFusionen
dc.subject.stwÜbernahmeen
dc.subject.stwMultinationales Unternehmenen
dc.subject.stwDirektinvestitionen
dc.subject.stwUnternehmensentwicklungen
dc.subject.stwWohlfahrtseffekten
dc.subject.stwTheorieen
dc.titleCross-border mergers and hollowing-out-
dc.typeWorking Paperen
dc.identifier.ppn618953655en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen
dc.identifier.repecRePEc:bca:bocawp:09-30en

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