PP958
Analítico de Periódico
FILSON, Darren, e outros
Evaluating mergers in the presence of dynamic competition using impacts on rivals / Darren Filson, Saman Olfati, Fatos Radoniqi
The Journal of Law & Economics, Chicago, v.58 n.4 (November 2015), p.915-934
DIREITO DAS SOCIEDADES / EUA, FUSÃO DE SOCIEDADES / EUA, FARMÁCIA / EUA, DIREITO DA CONCORRÊNCIA / EUA
We present evidence that event studies can help antitrust agencies forecast impacts of mergers on innovation. In large pharmaceutical mergers, cumulative abnormal returns on portfolios of rivals predict post-merger changes in the combined firm’s R&D intensity. More favorable impacts on rivals are associated with lower intensities, which is consistent with softening competition. Matching merging firms to similar non-merging firms suggests we can attribute the changes in R&D intensity to the mergers. We highlight the importance of deducting “expenses” associated with in-process R&D and provide guidance on how to define rivals, construct portfolios and use event studies in merger evaluations.