Measuring and decomposing productivity change in the presence of mergers
Fecha
2020Versión
Acceso abierto / Sarbide irekia
Tipo
Artículo / Artikulua
Versión
Versión aceptada / Onetsi den bertsioa
Identificador del proyecto
Impacto
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10.1016/j.ejor.2019.08.048
Resumen
Managers and policymakers often encourage mergers and acquisitions of companies with the aim of increasing the productivity of the involved firms. However, problems with the measurement of productivity change usually occur when analyzing companies that merged during the period under consideration: while only individual predecessor firms exist in the base period, in the following period only the i ...
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Managers and policymakers often encourage mergers and acquisitions of companies with the aim of increasing the productivity of the involved firms. However, problems with the measurement of productivity change usually occur when analyzing companies that merged during the period under consideration: while only individual predecessor firms exist in the base period, in the following period only the integrated company is observable. We therefore propose a new adaptation of the Malmquist index that is appropriate in the presence of mergers, which also allows for a detailed analysis of their effects on productivity change. Moreover, we believe that our methodological approach provides a useful widely applicable tool to identify the contribution of past mergers to productivity growth. We illustrate our merger consistent productivity decomposition, by using a sample of Japanese water supply systems observed in 2003, and the resulting consolidated and non-consolidated systems observed in 2009. On average, we find that mergers contributed positively to productivity change and that our merger consistent decomposition contributes to a better understanding of the determinants of productivity performance in the Japanese water sector. [--]
Materias
Productivity and competitiveness,
Mergers and consolidation,
Malmquist index,
Japanese water supply
Editor
Elsevier
Publicado en
European Journal of Operational Research, 282 (2020), 319-333
Departamento
Universidad Pública de Navarra. Departamento de Gestión de Empresas /
Nafarroako Unibertsitate Publikoa. Enpresen Kudeaketa Saila /
Universidad Pública de Navarra/Nafarroako Unibertsitate Publikoa. Institute for Advanced Research in Business and Economics - INARBE
Versión del editor
Entidades Financiadoras
Pablo Arocena acknowledges financial support from the Spanish Ministry of Economy and Competitiveness (project ECO2017-86054-C3-2-R). Takuya Urakami acknowledges financial support from JSPS Grant-in-Aid for Scientific Research(C) Grant Number 17K03738. Michael Zschille acknowledges support from DIW Berlin - German Institute for Economic Research, Germany where research on the paper was also conducted.