The last couple of years have seen record levels of merger and acquisition (M&A) activity but also increasing concern about industry concentration and its negative effects. And while much has been written to speculate about whether mergers improve or harm economic welfare, there is little empirical evidence supporting either side of the argument. In recent research, we provide new evidence that while mergers may raise profits, many fail to deliver efficiency gains that could increase overall prosperity.
Mergers May Be Profitable, but Are They Good for the Economy?
New research casts doubt.
November 15, 2016