Competition and Merger Activity in the U.S.
SMC Affiliated Work
School of Economics and Business Administration
Journal of Financial Research
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?”
Business | Economics
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
Okoeguale, Kevin and Loveland, Robert. Competition and Merger Activity in the U.S. (2018). Journal of Financial Research. 41 (1), 33-65. 10.1111/jfir.12138 [article]. https://digitalcommons.stmarys-ca.edu/school-economics-business-faculty-works/425