Local spillovers in M&A activity 

Anjana Rajamani, Frederik P. Schlingemann

Research output: Working paperAcademic


Wedocument novel evidence of local valuation spillovers across a large sample of public f irms during 1990-2019. Using a mutually exclusive stratification of subjects and local peers based on whether firms are from the most salient industries regionally, we document a strong positive association between firm-level acquisitiveness and exogenous variation in local peer valuations. Our measure for exogenous variation in local peers’ valuations does not rely on outflow-induced price pressures. We find evidence that exogenous peer effects and correlated effects explain valuation spillovers in acquisitiveness, which suggests managers are unable to separate noise from information content in local peer valuations.
Original languageEnglish
Publication statusPublished - 15 Mar 2024


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