Do horizontal mergers affect rivals’ cash holdings?
نویسندگان
چکیده
This paper examines how firms adjust cash holdings following horizontal mergers in the industry. Using a sample of 16,597 between US from 1984 to 2016, we find that three-year period mergers, marginal value decreases for rivals with lower investment opportunities. Rivals low Tobin's Q reduce while high hold more cash. These results suggest rival pattern is consistent their We also examine possible explanations rivals' adjustments and discuss competitive pressure mergers.
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ژورنال
عنوان ژورنال: International Review of Economics & Finance
سال: 2022
ISSN: ['1059-0560', '1873-8036']
DOI: https://doi.org/10.1016/j.iref.2022.06.011