What drives merger waves

摘要: Abstract Aggregate merger waves could be due to market timing or clustering of industry shocks for which mergers facilitate change the new environment. This study finds that economic, regulatory and technological drive waves. Whether shock leads a wave mergers, however, depends on whether there is sufficient overall capital liquidity. macro-level liquidity component causes cluster in time even if do not. Market-timing variables have little explanatory power relative an economic model including this component. The contemporaneous peak divisional acquisitions cash also suggests motivation activity.