Competition and Merger Activity in the U.S.

SMC Author

Kevin Okoeguale

SMC Affiliated Work

1

Status

Faculty

School

School of Economics and Business Administration

Department

Finance

Document Type

Article

Publication Date

Spring 2018

Publication / Conference / Sponsorship

Journal of Financial Research

Description/Abstract

In this article we examine the U.S. telecommunications industry during a period of rapid deregulation to determine the effects of a deregulatory shock on industry competition and merger activity. We show that merger activity exhibits a clear wave‐like pattern, regardless of the listing status of the participants. Increased competition and IPO activity following deregulation increased cash‐flow volatility and probability of exit while the introduction of new technology increased dispersion of economic efficiency across the industry. These changes resulted in a significant increase in merger activity. Competition also played an important role in shaping “who buys whom?”

Scholarly

yes

DOI

10.1111/jfir.12138

Volume

41

Issue

1

First Page

33

Last Page

65

Disciplines

Business | Economics

Original Citation

Loveland, R. and K. Okoeguale, “Competition and Merger Activity in the U.S. Telecommunications Industry.” Journal of Financial Research. 2017. https://doi.org/10.1111/jfir.12138

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