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Coerência corporativa e diversificação via fusões e aquisições: um exame para empresas líderes da indústria manufatureira norte-americana nos anos 90 [Corporate coherence and diversification through mergers and acquisitions: a study for leading manufacturing industries in the US in the 90’s]

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Author Info
Mariana Iootty (UFRRJ)
Francisco Ebeling (UFRJ)

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Abstract

This paper sheds light on the coherent nature of the diversification process of firms through mergers and acquisitions, and analyses the reasons why firms tend to include related activities in their production portfolios. Based on Penrose's ideas, it argues that even through M&A transactions, firms tend to determine a coherent (non-random) path of growth due to the internal conditionings defined by their productive and technological characteristics. The paper gives empirical support for these arguments through a cross section analysis, based on a sample of 106 big corporations from the manufacturing industry in the USA and their M&A transactions carried out in the period 1990-1999.

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Publisher Info
Article provided by Economics Department, Universidade Federal de Minas Gerais (Brazil) in its journal Nova Economia.

Volume (Year): 17 (2007)
Issue (Month): 3 (September-December)
Pages: 475-509
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Handle: RePEc:nov:artigo:v:17:y:2007:i:3:p:475-509

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Postal: Av. Antonio Carlos, 6627 - Predio da FACE Belo Horizonte, 31270-901 Brazil
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Web: http://www.face.ufmg.br/novaeconomia/

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Related research
Keywords: mergers and acquisitions; diversification; corporate coherence;

Find related papers by JEL classification:
L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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This page was last updated on 2009-12-9.


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