Benjamin Furlan, Harald Oberhofer, Hannes Winner (WIFO)
A Note on Merger and Acquisition Evaluation
WIFO Working Papers, 2014, (462), 8 Seiten
Online seit: 18.02.2014 0:00
This note proposes the continuous treatment approach as a valuable alternative to propensity score matching for evaluating economic effects of mergers and acquisitions (M&As). This framework allows to consider the variation in treatment intensities explicitly, and it does not call for the definition of cut-off values in traded ownership shares in order to construct a binary treatment indicator. We demonstrate the usefulness of this approach using data from European M&As and by relying on the example of post-M&A employment effects.
Keywords:Merger and acquisition evaluation, continuous treatment models, employment effects, generalised propensity score matching
Forschungsbereich:Industrie-, Innovations- und internationale Ökonomie – Regionalökonomie und räumliche Analyse
Sprache:Englisch