This note proposes the continuous treatment approach as a valuable alternative to propensity score matching for evaluating economic effects of merger and acquisitions (M&As). This framework allows considering the variation in treatment intensities explicitly, and it does not call for an arbitrary definition of cutoff values in traded ownership shares 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. The empirical exercise reveals some heterogeneities over the whole distribution of acquired ownership shares and across different types of M&As and country groups.
| Identifer | oai:union.ndltd.org:VIENNA/oai:epub.wu-wien.ac.at:5692 |
| Date | January 2016 |
| Creators | Furlan, Benjamin, Oberhofer, Harald, Winner, Hannes |
| Publisher | Oxford University Press |
| Source Sets | Wirtschaftsuniversität Wien |
| Language | English |
| Detected Language | English |
| Type | Article, PeerReviewed |
| Format | application/pdf |
| Relation | https://doi.org/10.1093/icc/dtv033, https://academic.oup.com/journals, http://epub.wu.ac.at/5692/ |
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