17/5/2021
Online Seminar at May 28th：Niklas Uliczka(Graduate School of Economics and Management, Tohoku University)
:Dear all,
Let me inform you of the following online research seminar.
Date: May 28, 2021
Time: 17:15-18:45
Venue: Online Seminar in Zoom
Organizer: Kohei Kamaga
Speaker: Niklas Uliczka (Graduate School of Economics and Management, Tohoku University)
Language: English
Title: The Impact of Mergers and Acquisitions on Top Income Shares
Abstract: Each successfully completed M&A transaction generates lucrative income opportunities to specific parties involved in deal-making due to compensation mechanisms linked to the transaction value. In theory, this transactional channel of M&A activity might relate to income inequality. The main objective of this study is to provide the first empirical analysis on the relationship between M&A and income shares at the very top of the income distribution. Using an unbalanced panel design with country-year observations from 46 countries allows exploiting cross-sectional along with the temporal variation. Methodologically, the Driscoll and Kraay estimator is applied as it is heteroskedasticity consistent and robust to general forms of serial or cross-sectional dependence. This study finds statistical evidence for a positive and non-linear association pattern between changes in M&A activity and changes in top income shares, indicating pro-rich effects. Additionally, periods of systematic banking crises significantly intensify the relationship between M&A activity and increasing income concentration.