Wards Finance Seminar Series "The Perfect Match: Assortative Matching in Mergers and Acquisitions”
Published: 26 February 2025
19 February 2025. Dr Veronica Rappoport. London School of Economics and Political Science
Dr Veronica Rappoport, London School of Economics and Political Science
"The Perfect Match: Assortative Matching in Mergers and Acquisitions”
Wednesday, 19 February 2025. 15:00-16:30
Room 103B, Clarice Pears SHW Building
Abstract
We interpret M&A Deals in Western Europe during the 2010's as the equilibrium of a matching model. Merger surplus arises from complementarities between multiple firm pre-merger characteristics. Large, productive but smaller partners, suggesting positive complementarity in productivities and negative cross complementarity between productivity and scale. We use post-merger data to show that estimated complementarities are strong predictors of merged firm performance. Our results inform the empirical relevance of different theories of mergers.
Bio
Dr Veronica Rappoport is an Associate Professor in the Management Department at the London School of Economics and Political Science (LSE), a Research Fellow at the Center for Economics Performance (CEP) and the Center for Economic Policy Research (CEPR). Prior to joining the LSE in 2012, she was an Assistant Professor in the Economics and Finance Department at Columbia Business School. She obtained her PhD in Economics from the Massachusetts Institute of Technology in 2005. Her research is on international economics and finance. The unifying theme of Veronica’s research agenda is the participation of firms in global markets in its multiple dimensions: their usage of credit, their innovation decisions, and their strategies for internationalization. She has publications on those topics in top academic journals as the Review of Economic Studies, the Journal of International Economics, the Journal of Monetary Economics, and Management Science.
Veronica has taught MBA courses on “Global Economic Environment” as well as master courses on “Business in the Global Economy” and “The World Trading System”.
For further information, please contact business-seminar-series@glasgow.ac.uk.
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First published: 26 February 2025
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