Do horizontal mergers affect rivals' cash holdings?

被引：1
|
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
相关论文
共 50 条
  • [1] The impact of horizontal mergers on suppliers' cash holdings
    Upson, James E.
    Wei, Chao
    JOURNAL OF FINANCIAL RESEARCH, 2025,
  • [2] Do CEO beliefs affect corporate cash holdings?
    Deshmukh, Sanjay
    Goel, Anand M.
    Howe, Keith M.
    JOURNAL OF CORPORATE FINANCE, 2021, 67
  • [3] Do Local Protestant Values Affect Corporate Cash Holdings?
    Hu, Huajing
    Lian, Yili
    Zhou, Wencang
    JOURNAL OF BUSINESS ETHICS, 2019, 154 (01) : 147 - 166
  • [4] Do Local Protestant Values Affect Corporate Cash Holdings?
    Huajing Hu
    Yili Lian
    Wencang Zhou
    Journal of Business Ethics, 2019, 154 : 147 - 166
  • [5] Do exchange traded funds affect corporate cash holdings?
    Lin, Beiqi
    Mei, Shunji
    Tan, Kelvin Jui Keng
    Zhang, Lei
    JOURNAL OF BUSINESS FINANCE & ACCOUNTING, 2024, 51 (5-6) : 1547 - 1592
  • [6] Do paid maternity leave mandates affect corporate cash holdings
    Gao, Shangyi
    Cheong, Chee Seng
    Zurbruegg, Ralf
    ECONOMICS LETTERS, 2024, 236
  • [7] Customers and cash: How relationships affect suppliers' cash holdings
    Itzkowitz, Jennifer
    JOURNAL OF CORPORATE FINANCE, 2013, 19 : 159 - 180
  • [8] Do macroeconomic conditions affect corporate cash holdings and cash adjustment dynamics? Evidence from GCC countries
    Guizani, Moncef
    Ajmi, Ahdi Noomen
    INTERNATIONAL JOURNAL OF EMERGING MARKETS, 2023, 18 (09) : 2643 - 2662
  • [9] Do business groups affect corporate cash holdings?Evidence from a transition economy
    Weixing Cai
    Cheng(Colin) Zeng
    Edward Lee
    Neslihan Ozkan
    China Journal of Accounting Research, 2016, (01) : 1 - 24
  • [10] Do business groups affect corporate cash holdings? Evidence from a transition economy
    Cai, Weixing
    Zeng, Cheng
    Lee, Edward
    Ozkan, Neslihan
    CHINA JOURNAL OF ACCOUNTING RESEARCH, 2016, 9 (01) : 1 - 24
12345