Analyzing linear mergers

Mergers and market valuation: real options approach

This paper investigates the connection between market valuation anda type of the merger (stock, cash) using real options setup. I solveexplicitly for the timing and terms of cash mergers in two deferent settingsto demonstrate that cash mergers generally occur at low marketvaluations, whereas stock mergers that may be observed at both low andhigh valuations; the result holds with some dierences ...

Mergers and the perception of market power: The role of aspiration levels

In this paper, we study bilateral mergers in experimental Cournot markets with initially three or four firms. Theory predicts preand post-merger total output well. However, merged firms produce significantly more than firms without a merger history. As a result, mergers are not as unprofitable as predicted. By analyzing two control treatments, we provide an explanation for these results based o...

A CRITIQUE OF FERC’S NEW MERGER GUIDELINES: Implications for Analyzing Market Power, Mergers, and Deregulation

How Mergers May Affect the Mass Scaling Relation between Gravitationally Bound Systems

Supermassive black hole masses (BH, MBH) are strongly correlated with galaxy stellar bulge masses (Mbulge) and there are several ideas to explain the origin of this relationship. This study isolates the role of galaxy mergers from considerations of other detailed physics to more clearly show how a linear BH-galaxy mass relation (MBH-Mgal) can naturally emerge regardless of how primordial BHs we...

The Type of Audit Firms Mergers in Iran: Formal or Real

Although increased mergers of audit firms in the Iranian audit market has attracted the attention of profession, regulatory bodies and researchers, little evidence is available on the motivations, barriers, processes, types, consequences and reasons for failures of audit firm’s mergers. Therefore, the present study is an attempt to open the black box of mergers of audit firms through in-depth i...