Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • March 2020
  • Article
  • Journal of Accounting Research

The Politics of M&A Antitrust

By: Mihir N. Mehta, Suraj Srinivasan and Wanli Zhao
  • Format:Print
ShareBar

Abstract

Antitrust regulators play a critical role in protecting market competition. We examine whether firms can use the political process to opportunistically influence antitrust reviews of corporate merger transactions. We exploit the fact that in some mergers, acquirers and/or targets are connected to powerful U.S. politicians that serve on the two congressional committees with antitrust regulator oversight. We find that merger parties with these connections receive relatively favorable antitrust review outcomes. To establish a causal link, we use plausibly exogenous shocks to firm-politician links and a falsification test. Politician incentives to influence merger antitrust review outcomes appear to be driven by lobbying, contributions, and prior business connections. In sum, our findings suggest that political interference affects the ability of antitrust regulators to provide independent recommendations about the anti-competitive effects of mergers.

Keywords

Political Economy; Antitrust; FTC; DOJ; Mergers and Acquisitions; Government and Politics; Power and Influence

Citation

Mehta, Mihir N., Suraj Srinivasan, and Wanli Zhao. "The Politics of M&A Antitrust." Journal of Accounting Research 58, no. 1 (March 2020): 5–53. (Previously circulated under title "Political Influence and Merger Antitrust Reviews.")
  • SSRN
  • Find it at Harvard

About The Author

Suraj Srinivasan

Accounting and Management
→More Publications

More from the Authors

    • October 2022 (Revised October 2022)
    • Faculty Research

    Ginkgo Bioworks vs. Scorpion Capital: The Debate Over Related-Party Revenues

    By: Aiyesha Dey, Jonas Heese, Suraj Srinivasan and Annelena Lobb
    • October 2022
    • Faculty Research

    Creating and Measuring Purpose at Viega

    By: Ethan Rouen and Suraj Srinivasan
    • June 2022 (Revised August 2022)
    • Faculty Research

    Sustainability Reporting at Dollar Tree, Inc.

    By: Suraj Srinivasan and Li-Kuan Ni
More from the Authors
  • Ginkgo Bioworks vs. Scorpion Capital: The Debate Over Related-Party Revenues By: Aiyesha Dey, Jonas Heese, Suraj Srinivasan and Annelena Lobb
  • Creating and Measuring Purpose at Viega By: Ethan Rouen and Suraj Srinivasan
  • Sustainability Reporting at Dollar Tree, Inc. By: Suraj Srinivasan and Li-Kuan Ni
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Accessibility
  • Digital Accessibility
Copyright © President & Fellows of Harvard College