About Me
I am a Ph.D. candidate in Economics at Purdue University working with Professor Stephen Martin. Prior to attending the Ph.D. program at Purdue, I earned a BA in Mathematics and Economics from Berea College in Berea, KY.
My research interests include Industrial Organization, Corporate Finance, Health Economics, International Economics, and Applied Econometrics. Currently, my research focuses on mergers & acquisitions, innovation, health industries, and diffusion of know-how across borders.
As a Ph.D. candidate, I have taught Principles of Economics and Macroeconomics at Purdue University, and have been named the Distinguished Graduate Student Instructor based on student evaluations.
Research Interests
Corporate Finance
Applied Econometrics
International Economics
Job Market Paper
"The Impact of Mergers and Acquisitions on Innovation"
Abstract:
I analyze the impact of acquisitions on innovation employing the fixed effects
negative binomial modeling approach. I find that, consistent with the efficiency gains argument, merging firms generate more useful
knowledge at a lower cost after the merger. Further, mergers involving a large and a small firm, compared to any other combination,
produce the highest number, as well as the most widely cited set, of patents, likely due to easing of financial constraints. Finally,
among merging firms, complementarity of ex-ante innovative agendas fosters a higher level of innovation after the merger. Results are
economically large and robust to numerous sensitivity checks.
Research in Progress
"Acquisitions and Product Market Outcomes: Evidence from the Medical Devices Industry"
"The Effect of Cross-Border Mergers on Innovation and Diffusion of Know-How" (joint with Yuriy Bots)
"A Perfect Recipe for Disaster: A Retrospective Analysis of the Boston Scientific and Guidant Merger"
Abstract:
Boston Scientific posted a loss of $4.26 billion in the quarter following its acquisition
of Guidant. Fortune magazine described the deal as the second worst deal ever. To this
day Boston Scientific is writing off goodwill associated with overpaying for Guidant. I
retrospectively analyze the outcomes of this merger, along with its impact on market
shares and consumer welfare. I explore how the largest acquisition in the medical
devices industry changed the market structure, competition, and innovative activity of
the surviving and the rival firms. By studying a case of a single acquisition, I am able to
dig deeper and gain insights on the characteristics of the merging entities and the
processes through which useful resources are combined and duplicates are eliminated
that may have led to undesirable post-acquisition outcomes. Lessons learned from this
example will be useful in deepening our understanding of why mergers fail and will be
valuable from the regulation point of view.
"Taxes and Firm Value – Evidence from the Ex-Dividend Day Stock Price Behavior"
Abstract:
This paper analyzes the behavior of ex-day stock prices when one of the imperfections
is naturally removed as a result of the U.S. tax legislation and attempts to observe if the
ex-day price drop is affected by taxes. The new law, by equating the capital gains tax
with taxes paid on dividends, provides for an ideal condition under which the
interaction between the ex-day price behavior and taxes can be examined by comparing
the test-statistic developed by Elton and Gruber (1970) from the periods before and
after the new tax law was enacted. Consistent with the tax-effect hypothesis, I find that
the price change (from the day before the ex-day to the ex-day)-to-dividend ratio
increased significantly after the elimination of preferential tax treatment of capital
gains. Moreover, this evidence also contrasts the short-term trading hypothesis, since
the new law did not change the tax incentives of short-term traders. The fact that I
observe a significant change shows that the market is not dominated by short-term
traders; instead the marginal stockholders are individual investors.
Teaching Experience
Courses Taught at Purdue University
- ECON 252: Macroeconomics (Instructor) | Spring 2012, Fall 2010, Summer 2010
- ECON 210: Principles of Economics (Recitation Instructor) | Spring 2009
Teaching Awards
- Krannert Certificate for Distinguished Teaching | Spring 2012, Fall 2010, Summer 2010
- Krannert Certificate for Outstanding Recitation Teaching | Spring 2009
Contact Info
Vusal Eminli
Department of Economics
403 West State Street
West Lafayette, IN 47907