Do horizontal mergers affect rivals' cash holdings?

被引：2
作者：
Hu, Xiaoxue [1 ]
Li, Dongxu [1 ,2 ]
机构：
[1] Xiamen Univ, Sch Econ, Dept Finance, Xiamen, Peoples R China
[2] Xiamen Univ, Wang Yanan Inst Studies Econ WISE, MOE Key Lab Econometr, Xiamen, Peoples R China
来源：
INTERNATIONAL REVIEW OF ECONOMICS & FINANCE | 2022年 / 82卷
基金：
中国国家自然科学基金;
关键词：
Horizontal merger; Cash; Investment opportunity; Industry competition; US FIRMS HOLD; FINANCIAL CONSTRAINTS; INDUSTRY STRUCTURE; MARKET; COMPETITION; INVESTMENT; DETERMINANTS; INNOVATION; POLICY; FLOW;
D O I：
10.1016/j.iref.2022.06.011
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
This paper examines how firms adjust cash holdings following horizontal mergers in the industry. Using a sample of 16,597 horizontal mergers between US firms from 1984 to 2016, we find that in the three-year period following horizontal mergers, the marginal value of cash decreases for the rivals with lower investment opportunities. Rivals with low Tobin's Q reduce cash while the rivals with high Tobin's Q hold more cash. These results suggest that rival firms adjust cash holdings in a pattern that is more consistent with their investment opportunities. We also examine possible explanations for the rivals' cash adjustments and discuss the rivals' competitive pressure following the horizontal mergers.
引用
收藏
页码：275 / 298
页数：24
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