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Evaluating horizontal mergers in Swedish district courts using plant capacity concepts: with a focus on nonconvexity

Author

Listed:
  • Xiaoqing Chen

    (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique)

  • Kristiaan Kerstens

    (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique)

Abstract

This contribution investigates the effects of horizontal mergers and acquisitions on the plant capacity utilisation of the Swedish district courts over the periods 2000-2017. More specifically, we empirically demonstrate the decomposition of input-oriented and output-oriented technical efficiency by incorporating several concepts of plant capacity utilisation. Moreover, we also explore the impact of convexity on input-oriented and output-oriented measures of plant capacity in the short-run scenario in an attempt to discover the potential rationale behind the merger wave. To the best of our knowledge, we are the first to assess horizontal mergers by employing plant capacity utilisation concepts. The results indicate that the horizontal mergers improve capacity utilisation. Furthermore, the nonconvex frontier method provides a more conservative estimate of plant capacity changes of this merger wave.

Suggested Citation

  • Xiaoqing Chen & Kristiaan Kerstens, 2022. "Evaluating horizontal mergers in Swedish district courts using plant capacity concepts: with a focus on nonconvexity," Post-Print halshs-03924994, HAL.
  • Handle: RePEc:hal:journl:halshs-03924994
    DOI: 10.1051/ro/2022205
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03924994
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    More about this item

    Keywords

    Data envelopment analysis; free disposal hull; plant capacity utilisation; horizontal mergers and acquisitions;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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