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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]

Author

Listed:
  • Mariana Iootty

    (UFRRJ)

  • Francisco Ebeling

    (UFRJ)

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.

Suggested Citation

  • Mariana Iootty & Francisco Ebeling, 2007. "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 m," Nova Economia, Economics Department, Universidade Federal de Minas Gerais (Brazil), vol. 17(3), pages 475-509, September.
  • Handle: RePEc:nov:artigo:v:17:y:2007:i:3:p:475-509
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    More about this item

    Keywords

    mergers and acquisitions; diversification; corporate coherence;

    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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