Title

Effects of parasocial relationship, reality TV, and social media on celebrity endorsement.

Publication Type

Text

Publication Date

2014

Abstract

We examine the impact of operating synergies in horizontal mergers on the stock and operating performance of merging firms’ product market rivals, corporate customers, and suppliers. Using a unique dataset of merger-related synergy forecasts disclosed by firms’ insiders, we provide first direct evidence that horizontal merger synergies affect valuation and performance of rivals, customers, and suppliers in ways consistent with strategic effects predicted by industrial organization theory. More broadly, our results underscore the importance of inter-firm linkages for firms’ valuation and performance.

Keywords

horizontal mergers, synergies, competitors, customers, suppliers.

Discipline

Business

Publisher

International Journal of Advertising

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