FINC3013 Lecture Notes - Lecture 3: Fee Tail, High Tech, Free Trade
31 Jul 2018
School
Department
Course
Professor
Document Summary
Wave 1: 1895-1904: drivers, favourable economic and stock market conditions, rapid technological innovation, e. g. electrical light and power, telephone, chemical dyes, petroleum. Industries: wide variety of manufacturing firms: organisational invention: horizontal trust, turning point: regulation against horizontal combinations, horizontal mergers monopoly market structure more than 3,000 companies disappeared. Wave 2: 1925-1929: drivers, boom in stock market prices, heightened regulation against horizontal combinations, technology innovation. Wave 4: 1981-1987: drivers, rising stock prices and falling interest rates, growing capital market innovation and sophistication, deregulations, e. g. airline industry, organisational invention: lbo specialist, private equity firm. Industries: very broad-based touched almost all sectors; many financial and international buyers (hostile deals) Investment bankers played an aggressive role: turning point: recession in 1990, m&a advisory services became a lucrative source of income for goldman sachs. Wave 5: 1992-2000: drivers, rising stock prices and falling interest rates. Industry-specific shocks, e. g. deregulation, technological innovation, demographic change: organisational invention: venture capitalists.
