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The success or failure of mergers in Japan’s paper industry: evaluation of merger effects using DEA and simulation data

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  • Masahiro Ueda

    (Doshisha University)

Abstract

There have been many empirical studies regarding mergers in Japan’s paper industry from the standpoint of productivity and cost effectiveness. However, such studies only compared effectiveness based on data regarding existing companies. This article creates simulations of data on hypothetical mergers. A relative comparison will be made between such simulated data and the actual merger data regarding cost effectiveness using a data envelopment analysis (DEA). The results of the DEA efficiency analysis using such data show that, in mergers between large companies and midsized companies, in the long run, their efficiency tends to improve. A series of mergers in Japan’s paper industry, in general, can be positively evaluated since these mergers did not significantly reduce the cost-effective value of the surviving companies.

Suggested Citation

  • Masahiro Ueda, 2020. "The success or failure of mergers in Japan’s paper industry: evaluation of merger effects using DEA and simulation data," International Journal of Economic Policy Studies, Springer, vol. 14(1), pages 179-197, February.
    • Handle: RePEc:spr:ijoeps:v:14:y:2020:i:1:d:10.1007_s42495-019-00027-9
    DOI: 10.1007/s42495-019-00027-9
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    References listed on IDEAS

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    Cited by:

    1. Yung‐ho Chiu & Tai‐Yu Lin & Tzu‐Han Chang & Yi‐Nuo Lin & Shih‐Yung Chiu, 2021. "Prevaluating efficiency gains from potential mergers and acquisitions in the financial industry with the Resample Past–Present–Future data envelopment analysis approach," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(2), pages 369-384, March.

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