Title :
A new conceptional model for merger waves: Industry competition diffusion based on complex networks
Author :
Rui, Hou ; Jianmei, Yang ; Canzhong, Yao
Author_Institution :
Sch. of Bus. Adm., South China Univ. of Technol., Guangzhou, China
Abstract :
The existing two main ways to interpret the formation of merge waves are neo-classical approach and behavior finance approach. Both of these two methods focus on exogenous variables influence, such as the industry shock, shakeout, stock price fluctuation, manager´s behaviors and so forth, while they neglect effects of endogenous variables, such as the interactive competition among enterprises and market structure. In this study, the avalanche effect theory of complex network, industry competitive pressure theory and Mergers and Acquisitions (M&A) theory are skillfully combined. It puts forward new ideas that competitive pressures diffusion leads to merger waves. The ideas and theoretical framework is expected to explain the formation process of merger waves from the perspective of industry competition structure. Meanwhile, this method will transfer the research object from individual enterprise to the relationship among enterprises, and find a comprehensive and integrated research framework for the analysis between enterprise-level competitive behavior of individual micro-analysis and industry-level statistical behavior of macro-analysis.
Keywords :
corporate acquisitions; statistical analysis; avalanche effect theory; behavior finance approach; individual microanalysis; industrial competitive relationship complex network; industry competition diffusion; industry competition structure; industry competitive pressure theory; industry-level statistical behavior; merger waves; mergers-and-acquisition; neo-classical approach; Complex networks; Conference management; Corporate acquisitions; Electric shock; Environmental economics; Finance; Financial management; Forward contracts; Industrial relations; Stock markets; competition diffusion; industrial competitive relationship complex networks(ICRCN); merger waves;
Conference_Titel :
Networking and Digital Society (ICNDS), 2010 2nd International Conference on
Conference_Location :
Wenzhou
Print_ISBN :
978-1-4244-5162-3
DOI :
10.1109/ICNDS.2010.5479150