Relaxation of Antitrust Regulations and Shareholder Returns: Evidence from the Korean Market
Citations

WEB OF SCIENCE

0
Citations

SCOPUS

0

초록

This study examines the effects of the 2007 antitrust regulations on the value of acquiring firms engaged in mergers and acquisitions (M&A) in Korea. By employing a difference-in-differences model and analyzing 5-day cumulative average abnormal returns (CAR), the study reveals that horizontal acquisitions lead to increased shareholder returns. However, there is no indication that market power or cost efficiency are contributing factors. For chaebol firms, M&A significantly decreases firm value, likely due to tunneling. Subsample analyses suggest that managerial entrenchment causes this decline, while non-chaebol firms show no empirical support for the market power or cost efficiency hypotheses.

키워드

Antitrust lawMerger controlHorizontal M&AMarket powerGROUP-AFFILIATED COMPANIESVERTICAL INTEGRATIONHORIZONTAL MERGERSBUSINESS GROUPSCORPORATE GOVERNANCEPERFORMANCEFIRMSPOWEREXPROPRIATIONINFORMATION
제목
Relaxation of Antitrust Regulations and Shareholder Returns: Evidence from the Korean Market
저자
Kim, Hye SeokChung, Chung YoungSul, Hong KeeYahya, Farzan
DOI
10.1111/ajfs.70010
발행일
2025-06
유형
Article; Early Access
저널명
Asia-Pacific Journal of Financial Studies
54
3
페이지
276 ~ 308