Drivers of Merger Waves: A Revisit
This study reexamines whether the occurrence of merger waves can be explained by the neoclassical hypothesis or the behavioral hypothesis. Using merger data for the period spanning 1990 through 2001, this study directly compares the two theories and finds that, in general, merger waves occur at the...
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| Format: | Article |
| Language: | English |
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Universitas Gadjah Mada
2008-01-01
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| Series: | Gadjah Mada International Journal of Business |
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| Online Access: | https://jurnal.ugm.ac.id/gamaijb/article/view/5586 |
| _version_ | 1828347458476834816 |
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| author | Soegiharto Soegiharto |
| author_facet | Soegiharto Soegiharto |
| author_sort | Soegiharto Soegiharto |
| collection | DOAJ |
| description | This study reexamines whether the occurrence of merger waves can be explained by the neoclassical hypothesis or the behavioral hypothesis. Using merger data for the period spanning 1990 through 2001, this study directly compares the two theories and finds that, in general, merger waves occur at the time the capital liquidity is high, firms’ stocks are overvalued, and deregulatory events exist. These suggest that the existence of an economic motivation for transactions and the availability of lower transaction cost and/or overvalued stock to generate large volume of transactions may cause industry merger waves to cluster in time |
| first_indexed | 2024-04-14T00:40:53Z |
| format | Article |
| id | doaj.art-d5f0823561a14783a26fbf6757887a24 |
| institution | Directory Open Access Journal |
| issn | 1411-1128 2338-7238 |
| language | English |
| last_indexed | 2024-04-14T00:40:53Z |
| publishDate | 2008-01-01 |
| publisher | Universitas Gadjah Mada |
| record_format | Article |
| series | Gadjah Mada International Journal of Business |
| spelling | doaj.art-d5f0823561a14783a26fbf6757887a242022-12-22T02:22:12ZengUniversitas Gadjah MadaGadjah Mada International Journal of Business1411-11282338-72382008-01-0110112310.22146/gamaijb.55864912Drivers of Merger Waves: A RevisitSoegiharto Soegiharto0YKPN School of Business (STIE YKPN), YogyakartaThis study reexamines whether the occurrence of merger waves can be explained by the neoclassical hypothesis or the behavioral hypothesis. Using merger data for the period spanning 1990 through 2001, this study directly compares the two theories and finds that, in general, merger waves occur at the time the capital liquidity is high, firms’ stocks are overvalued, and deregulatory events exist. These suggest that the existence of an economic motivation for transactions and the availability of lower transaction cost and/or overvalued stock to generate large volume of transactions may cause industry merger waves to cluster in timehttps://jurnal.ugm.ac.id/gamaijb/article/view/5586industry shocksmarket misvaluationsmergermerger waves |
| spellingShingle | Soegiharto Soegiharto Drivers of Merger Waves: A Revisit Gadjah Mada International Journal of Business industry shocks market misvaluations merger merger waves |
| title | Drivers of Merger Waves: A Revisit |
| title_full | Drivers of Merger Waves: A Revisit |
| title_fullStr | Drivers of Merger Waves: A Revisit |
| title_full_unstemmed | Drivers of Merger Waves: A Revisit |
| title_short | Drivers of Merger Waves: A Revisit |
| title_sort | drivers of merger waves a revisit |
| topic | industry shocks market misvaluations merger merger waves |
| url | https://jurnal.ugm.ac.id/gamaijb/article/view/5586 |
| work_keys_str_mv | AT soegihartosoegiharto driversofmergerwavesarevisit |