search query: @indexterm INVESTMENT INCENTIVES / total: 88
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| Author: | Bittlingmayer, G. |
| Title: | Merger as a Form of Investment |
| Journal: | Kyklos
1996 : VOL. 49:2, p. 127-153 |
| Index terms: | MERGERS INVESTMENT INVESTMENT INCENTIVES JOINT BUSINESS VENTURES USA GERMANY |
| Language: | eng |
| Abstract: | A firm can make investments in tangible and intangible capital by buying components in the market and assembling them itself, or it can buy assembled components, that is, it can purchase another firm or a portion of its assets. This straightforward approach to merger is consistens with the theory of the firm, especially the emphasis on monitoring and incentives, and it provides a unified framework in terms of supply and demand. It also explains a number of empirical regularities, in particular the cross-section correlation of merger intensity with industry growth , R&D, and productivity increases. Additional new evidence shows a positive relationship between mergers and investement in both the U.S. and Germany , and between joint ventures and investment in Germany. |
SCIMA