Growing through the merger and acquisition

• Main Author: XU, Jianhuan
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2017
• Subjects: Growth; Merger and acquisition; Knowledge spillover; Matching; Complementarity; Capital reallocation; Growth and Development; International Economics
• Online Access: https://ink.library.smu.edu.sg/soe_research/2050; https://ink.library.smu.edu.sg/context/soe_research/article/3049/viewcontent/1_s20_S0165188917300969_main.pdf
• Institution: Singapore Management University

The paper studies with an endogenous growth model how the merger and acquisition (M&A) affects the aggregate growth rate. We model the M&A as a capital reallocation process, which can increase both productivity and growth rates of firms. The model is tractable and greatly consistent with pat...