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dc.contributor.authorMataigne, Virginie
dc.contributor.authorLuypaert, Mathieu
dc.contributor.authorManigart, Sophie
dc.date.accessioned2021-05-26T14:23:58Z
dc.date.available2021-05-26T14:23:58Z
dc.date.issued2021en_US
dc.identifier.issn0929-1199
dc.identifier.doi10.1016/j.jcorpfin.2021.101988
dc.identifier.urihttp://hdl.handle.net/20.500.12127/6940
dc.description.abstractThis study examines the impact of horizontal acquisition announcements on the value of direct competitors of the combined entity. We argue that the ownership structure of the target drives competitor wealth effects. First, the stronger disciplining force of the market for corporate control for public firms compared to private firms will lead to higher competitive pressure post-acquisition when a public firm is acquired, leading to more negative valuation effects of direct competitors. Second, acquisitions of subsidiary targets, compared to stand-alone targets, are expected to lead to stronger asset utilization improvements in the target, leading to more negative competitor returns. A unique hand-collected sample of 1,038 direct competitors of 228 horizontal acquisitions in Europe empirically supports these hypotheses. Alternative explanations, such as information asymmetry or empire-building, are rejected.en_US
dc.language.isoenen_US
dc.publisherElsevieren_US
dc.subjectHorizontal Acquisitionen_US
dc.subjectAcquisitions
dc.subjectValuation
dc.subjectMarket for corporate control
dc.subjectOwnership structure
dc.titleAcquisitions: a curse or blessing for direct competitors? The impact of target ownership structure  en_US
dc.identifier.journalJournal of Corporate Financeen_US
dc.source.volume69
dc.source.issueAugust
vlerick.knowledgedomainAccounting & Financeen_US
vlerick.typearticleVlerick strategic journal articleen_US
vlerick.vlerickdepartmentAFen_US
dc.identifier.vperid132517en_US
dc.identifier.vperid35884en_US


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