Do Mergers and Acquisitions Improve Efficiency? Evidence from Power Plants.
We analyze acquisitions in US power plants by using rich data on hourly productivity and thousands of ownership changes. We find a 2% average increase in efficiency for acquired plants, beginning 5 months after acquisition. Efficiency gains rise to 5% under direct ownership changes, with no signific...
| Publicado en: | Journal of Political Economy Vol. 134; no. 8; pp. 2262 - 2313 |
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| Autores principales: | , |
| Formato: | Artículo |
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University of Chicago Press
Aug2026
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=196481394&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 196481394 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00223808 JPE jtl: Journal of Political Economy issn: 00223808 maglogo: N pubinfo: dt: Aug2026 vid: 134 iid: 8 pid: 415 pub: University of Chicago Press artinfo: ui: 196481394 10.1086/740222 ppf: 2262 ppct: 51 formats: tig: atl: Do Mergers and Acquisitions Improve Efficiency? Evidence from Power Plants. aug: au: Demirer, Mert Karaduman, Ömer affil: MIT Sloan School of Management Stanford Graduate School of Business su: United States Labor productivity Resource allocation Mergers & acquisitions Economic efficiency Process optimization Power plants Sale of business enterprises sug: subj: Labor productivity Resource allocation United States Power and Communication Line and Related Structures Construction Mergers & acquisitions Economic efficiency Process optimization Power plants Sale of business enterprises ab: We analyze acquisitions in US power plants by using rich data on hourly productivity and thousands of ownership changes. We find a 2% average increase in efficiency for acquired plants, beginning 5 months after acquisition. Efficiency gains rise to 5% under direct ownership changes, with no significant change when only parent ownership changes. Investigating the mechanisms, three-quarters of the efficiency gain is attributed to increased productive efficiency, while the rest comes from dynamic efficiency through changes in production allocation. Our evidence suggests that high-productivity firms buy underperforming assets from low-productivity firms and make them as productive as their existing assets through operational improvements. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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