Value Creation and Value Reallocation in Mergers and Acquisitions

摘要: Abstract We examine the abnormal returns to firms in industries experiencing mergers over period 1979 – 2007. In percentage terms, are large and positive for target firms, negative acquiring small rival firms. Given relative sizes of three types firm, measured dollars same order magnitude each type. Since much return targets is simply a transfer from acquirers, disproportionate share value created merger activity accrues rivals. Lack statistical significance limits conclusions that can be drawn, but absence impact on industry rivals argues against theories based acquirers gaining strategic advantage product market competitors. Theories collusion signaling find more support empirically. *Corresponding author: E-mail: andrew.samwick@dartmouth.edu. 6106 Rockefeller Hall, Hanover, NH 03755. (603) 646-2893.