Predicting Mergers and Acquisitions in Competitive Industries: A Model Based on Temporal Dynamics and Industry Networks

arXiv:2404.07298v1 Announce Type: cross
Abstract: M&A activities are pivotal for market consolidation, enabling firms to augment market power through strategic complementarities. Existing research often overlooks the peer effect, the mutual influence of M&A behaviors among firms, and fails to capture complex interdependencies within industry networks. Common approaches suffer from reliance on ad-hoc feature engineering, data truncation leading to significant information loss, reduced predictive accuracy, and challenges in real-world application. Additionally, the rarity of M&A events necessitates data rebalancing in conventional …

abstract acquisitions arxiv consolidation cs.lg cs.si dynamics enabling industries industry influence market mergers mergers and acquisitions networks peer pivotal power q-fin.gn q-fin.st research temporal through type