The economic links between firms created by customer and supplier relationships are critical determinants of those firms' values and actions. We demonstrate that significant trade relationships and indirect economic links incrementally explain which firms are more likely to be involved in...

Firm value can change substantially between the time deal terms for a public target are set and closing, risking renegotiation or termination. We find increases in market volatility decrease subsequent deal activity, but only for public targets subject to an interim period. The effect is...

We represent the economy as a network of industries connected through customer and supplier trade flows. Using this network topology, we find that stronger product market connections lead to a greater incidence of cross-industry mergers. Second, mergers propagate in waves across the network...