This paper analyses the unit cost effects of mergers and acquisitions (M&As) using linear, quadratic, and translog cost functions. In addition to a basic unit cost model we specify separate models for distress, profit, relative size, and cost difference, among the merging firms. We use a sample of 19 horizontal M&As in the international airline industry and data spanning from 1980 to 2012. Our models show that M&As do not affect unit costs in a significant way, unless the relative size difference of the merging firms is large, in which case we detect an increase in unit costs.

(2017). Cost functions and determinants of unit cost effects in horizontal airline M&As [journal article - articolo]. In TRANSPORTATION RESEARCH. PART A, POLICY AND PRACTICE. Retrieved from http://hdl.handle.net/10446/118388

Cost functions and determinants of unit cost effects in horizontal airline M&As

Redondi, Renato
2017-01-01

Abstract

This paper analyses the unit cost effects of mergers and acquisitions (M&As) using linear, quadratic, and translog cost functions. In addition to a basic unit cost model we specify separate models for distress, profit, relative size, and cost difference, among the merging firms. We use a sample of 19 horizontal M&As in the international airline industry and data spanning from 1980 to 2012. Our models show that M&As do not affect unit costs in a significant way, unless the relative size difference of the merging firms is large, in which case we detect an increase in unit costs.
journal article - articolo
2017
Gudmundsson, Sveinn Vidar; Merkert, Rico; Redondi, Renato
(2017). Cost functions and determinants of unit cost effects in horizontal airline M&As [journal article - articolo]. In TRANSPORTATION RESEARCH. PART A, POLICY AND PRACTICE. Retrieved from http://hdl.handle.net/10446/118388
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10446/118388
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