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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...

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Published in:Journal of Political Economy Vol. 134; no. 8; pp. 2262 - 2313
Main Authors: Demirer, Mert, Karaduman, Ömer
Format: Article
Published: University of Chicago Press Aug2026
Subjects:
United States
Labor productivity
Resource allocation
Mergers & acquisitions
Economic efficiency
Process optimization
Power plants
Sale of business enterprises
Online Access:View this record in EBSCOhost

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