| Publication type: | Article in scientific journal |
| Type of review: | Peer review (publication) |
| Title: | The impact of European antitrust policy : evidence from the stock market |
| Authors: | Günster, Andrea Maria van Dijk, Mathijs |
| DOI: | 10.1016/j.irle.2015.12.001 |
| Published in: | International Review of Law and Economics |
| Volume(Issue): | 46 |
| Page(s): | 20 |
| Pages to: | 33 |
| Issue Date: | 2015 |
| Publisher / Ed. Institution: | Elsevier |
| ISSN: | 0144-8188 |
| Language: | English |
| Subjects: | Antitrust; Competition policy; European Commission; Event study |
| Subject (DDC): | 349: Comparative law and foreign law |
| Abstract: | We evaluate the impact of European antitrust policy by analyzing the stock market response to investigation announcements, infringement decisions, and appeals for 253 companies involved in 118 European antitrust cases over 1974–2004. We find significantly negative stock price responses of almost -5% around the dawn raid and -2% around the final decision, and a significantly positive response of up to 4% around a successful appeal. These numbers correspond to a total market value loss of €24 billion around the raid and the decision, of which roughly 75% cannot be explained by fines and legal costs. The stock market thus anticipates a decrease in profitability and reputational damage. The magnitude of the market response depends on the fine, infringement duration, and in particular firm size and media attention. Small firms suffer more from an infringement decision. Greater newspaper coverage is associated with a more pronounced response, suggesting the importance of reputational effects. |
| URI: | https://digitalcollection.zhaw.ch/handle/11475/9102 |
| Fulltext version: | Published version |
| License (according to publishing contract): | Licence according to publishing contract |
| Departement: | School of Management and Law |
| Organisational Unit: | Center for Labor, Digital and Regional Economics (CLDR) |
| Appears in collections: | Publikationen School of Management and Law |
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Günster, A. M., & van Dijk, M. (2015). The impact of European antitrust policy : evidence from the stock market. International Review of Law and Economics, 46, 20–33. https://doi.org/10.1016/j.irle.2015.12.001
Günster, A.M. and van Dijk, M. (2015) ‘The impact of European antitrust policy : evidence from the stock market’, International Review of Law and Economics, 46, pp. 20–33. Available at: https://doi.org/10.1016/j.irle.2015.12.001.
A. M. Günster and M. van Dijk, “The impact of European antitrust policy : evidence from the stock market,” International Review of Law and Economics, vol. 46, pp. 20–33, 2015, doi: 10.1016/j.irle.2015.12.001.
GÜNSTER, Andrea Maria und Mathijs VAN DIJK, 2015. The impact of European antitrust policy : evidence from the stock market. International Review of Law and Economics. 2015. Bd. 46, S. 20–33. DOI 10.1016/j.irle.2015.12.001
Günster, Andrea Maria, and Mathijs van Dijk. 2015. “The Impact of European Antitrust Policy : Evidence from the Stock Market.” International Review of Law and Economics 46: 20–33. https://doi.org/10.1016/j.irle.2015.12.001.
Günster, Andrea Maria, and Mathijs van Dijk. “The Impact of European Antitrust Policy : Evidence from the Stock Market.” International Review of Law and Economics, vol. 46, 2015, pp. 20–33, https://doi.org/10.1016/j.irle.2015.12.001.
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