Post-merger restructuring and the boundaries of the firm
We examine how firms redraw their boundaries after acquisitions using plant-level data. We find that there is extensive restructuring in a short period following mergers and full-firm acquisitions. Acquirers of full firms sell 27% and close 19% of the plants of target firms within three years of the...
Gespeichert in:
| Veröffentlicht in: | Journal of financial economics 2011-11, Vol.102 (2), p.317-343 |
|---|---|
| Hauptverfasser: | , , |
| Format: | Artikel |
| Sprache: | eng |
| Schlagworte: | |
| Online-Zugang: | Volltext |
| Tags: |
Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
|
| container_end_page | 343 |
|---|---|
| container_issue | 2 |
| container_start_page | 317 |
| container_title | Journal of financial economics |
| container_volume | 102 |
| creator | Maksimovic, Vojislav Phillips, Gordon Prabhala, N.R. |
| description | We examine how firms redraw their boundaries after acquisitions using plant-level data. We find that there is extensive restructuring in a short period following mergers and full-firm acquisitions. Acquirers of full firms sell 27% and close 19% of the plants of target firms within three years of the acquisition. Acquirers with skill in running their peripheral divisions tend to retain more acquired plants. Retained plants increase in productivity whereas sold plants do not. These results suggest that acquirers restructure targets in ways that exploit their comparative advantage.
► We examine plant-level restructuring after mergers and acquisitions. ► Acquirers of full firms sell 27% and close 19% of the target-firm plants. ► Skilled acquirers retain more target plants, increasing productivity of these plants. ► Firms restructure targets to exploit their comparative advantage across industries. |
| doi_str_mv | 10.1016/j.jfineco.2011.05.013 |
| format | Article |
| fullrecord | <record><control><sourceid>proquest_cross</sourceid><recordid>TN_cdi_proquest_miscellaneous_905209284</recordid><sourceformat>XML</sourceformat><sourcesystem>PC</sourcesystem><els_id>S0304405X1100136X</els_id><sourcerecordid>905209284</sourcerecordid><originalsourceid>FETCH-LOGICAL-c544t-75dabdc9c1defdd9f1dc11e06095b3b71b45f5ec946727c98d1bbb5c037d69f03</originalsourceid><addsrcrecordid>eNqFkE9LxDAQxYMouK5-BKF48dQ6aZOmOYks_gNBDwreQptM1pTdZk1awW9v1t2TF-cyMPze480j5JxCQYHWV33RWzeg9kUJlBbAC6DVAZnRRsi8FIIdkhlUwHIG_P2YnMTYQxrB5Yw0Lz6O-RrDEkMWMI5h0uMU3LDM2sFk4wdmnZ8G0waHMfP292JdWJ-SI9uuIp7t95y83d2-Lh7yp-f7x8XNU645Y2MuuGk7o6WmBq0x0lKjKUWoQfKu6gTtGLcctWS1KIWWjaFd13ENlTC1tFDNyeXOdxP855QCqrWLGlerdkA_RSWBlyDLhiXy4g_Z-ykMKZxqJKsqgFomiO8gHXyMAa3aBLduw7eioLZtql7t21TbNhVwldpMuuudDtOvXw6DitrhoNG4gHpUxrt_HH4AgdaATA</addsrcrecordid><sourcetype>Aggregation Database</sourcetype><iscdi>true</iscdi><recordtype>article</recordtype><pqid>894330069</pqid></control><display><type>article</type><title>Post-merger restructuring and the boundaries of the firm</title><source>Elsevier ScienceDirect Journals Complete</source><creator>Maksimovic, Vojislav ; Phillips, Gordon ; Prabhala, N.R.</creator><creatorcontrib>Maksimovic, Vojislav ; Phillips, Gordon ; Prabhala, N.R.</creatorcontrib><description>We examine how firms redraw their boundaries after acquisitions using plant-level data. We find that there is extensive restructuring in a short period following mergers and full-firm acquisitions. Acquirers of full firms sell 27% and close 19% of the plants of target firms within three years of the acquisition. Acquirers with skill in running their peripheral divisions tend to retain more acquired plants. Retained plants increase in productivity whereas sold plants do not. These results suggest that acquirers restructure targets in ways that exploit their comparative advantage.
► We examine plant-level restructuring after mergers and acquisitions. ► Acquirers of full firms sell 27% and close 19% of the target-firm plants. ► Skilled acquirers retain more target plants, increasing productivity of these plants. ► Firms restructure targets to exploit their comparative advantage across industries.</description><identifier>ISSN: 0304-405X</identifier><identifier>EISSN: 1879-2774</identifier><identifier>DOI: 10.1016/j.jfineco.2011.05.013</identifier><identifier>CODEN: JFECDT</identifier><language>eng</language><publisher>Amsterdam: Elsevier B.V</publisher><subject>Acquisitions ; Acquisitions & mergers ; Agency ; Agency theory ; Closures ; Comparative advantage ; Corporate reorganization ; Divestitures ; Firm boundaries ; Firm theory ; Industrial plants ; Mergers ; Post-merger performance ; Productivity ; Restructuring ; Selloffs ; Studies ; Target company ; Theory of the firm</subject><ispartof>Journal of financial economics, 2011-11, Vol.102 (2), p.317-343</ispartof><rights>2011 Elsevier B.V.</rights><rights>Copyright Elsevier Sequoia S.A. Nov 2011</rights><lds50>peer_reviewed</lds50><oa>free_for_read</oa><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c544t-75dabdc9c1defdd9f1dc11e06095b3b71b45f5ec946727c98d1bbb5c037d69f03</citedby><cites>FETCH-LOGICAL-c544t-75dabdc9c1defdd9f1dc11e06095b3b71b45f5ec946727c98d1bbb5c037d69f03</cites></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><linktohtml>$$Uhttps://dx.doi.org/10.1016/j.jfineco.2011.05.013$$EHTML$$P50$$Gelsevier$$H</linktohtml><link.rule.ids>314,780,784,3550,27924,27925,45995</link.rule.ids></links><search><creatorcontrib>Maksimovic, Vojislav</creatorcontrib><creatorcontrib>Phillips, Gordon</creatorcontrib><creatorcontrib>Prabhala, N.R.</creatorcontrib><title>Post-merger restructuring and the boundaries of the firm</title><title>Journal of financial economics</title><description>We examine how firms redraw their boundaries after acquisitions using plant-level data. We find that there is extensive restructuring in a short period following mergers and full-firm acquisitions. Acquirers of full firms sell 27% and close 19% of the plants of target firms within three years of the acquisition. Acquirers with skill in running their peripheral divisions tend to retain more acquired plants. Retained plants increase in productivity whereas sold plants do not. These results suggest that acquirers restructure targets in ways that exploit their comparative advantage.
► We examine plant-level restructuring after mergers and acquisitions. ► Acquirers of full firms sell 27% and close 19% of the target-firm plants. ► Skilled acquirers retain more target plants, increasing productivity of these plants. ► Firms restructure targets to exploit their comparative advantage across industries.</description><subject>Acquisitions</subject><subject>Acquisitions & mergers</subject><subject>Agency</subject><subject>Agency theory</subject><subject>Closures</subject><subject>Comparative advantage</subject><subject>Corporate reorganization</subject><subject>Divestitures</subject><subject>Firm boundaries</subject><subject>Firm theory</subject><subject>Industrial plants</subject><subject>Mergers</subject><subject>Post-merger performance</subject><subject>Productivity</subject><subject>Restructuring</subject><subject>Selloffs</subject><subject>Studies</subject><subject>Target company</subject><subject>Theory of the firm</subject><issn>0304-405X</issn><issn>1879-2774</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2011</creationdate><recordtype>article</recordtype><recordid>eNqFkE9LxDAQxYMouK5-BKF48dQ6aZOmOYks_gNBDwreQptM1pTdZk1awW9v1t2TF-cyMPze480j5JxCQYHWV33RWzeg9kUJlBbAC6DVAZnRRsi8FIIdkhlUwHIG_P2YnMTYQxrB5Yw0Lz6O-RrDEkMWMI5h0uMU3LDM2sFk4wdmnZ8G0waHMfP292JdWJ-SI9uuIp7t95y83d2-Lh7yp-f7x8XNU645Y2MuuGk7o6WmBq0x0lKjKUWoQfKu6gTtGLcctWS1KIWWjaFd13ENlTC1tFDNyeXOdxP855QCqrWLGlerdkA_RSWBlyDLhiXy4g_Z-ykMKZxqJKsqgFomiO8gHXyMAa3aBLduw7eioLZtql7t21TbNhVwldpMuuudDtOvXw6DitrhoNG4gHpUxrt_HH4AgdaATA</recordid><startdate>20111101</startdate><enddate>20111101</enddate><creator>Maksimovic, Vojislav</creator><creator>Phillips, Gordon</creator><creator>Prabhala, N.R.</creator><general>Elsevier B.V</general><general>Elsevier Sequoia S.A</general><scope>AAYXX</scope><scope>CITATION</scope><scope>8BJ</scope><scope>FQK</scope><scope>JBE</scope></search><sort><creationdate>20111101</creationdate><title>Post-merger restructuring and the boundaries of the firm</title><author>Maksimovic, Vojislav ; Phillips, Gordon ; Prabhala, N.R.</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c544t-75dabdc9c1defdd9f1dc11e06095b3b71b45f5ec946727c98d1bbb5c037d69f03</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2011</creationdate><topic>Acquisitions</topic><topic>Acquisitions & mergers</topic><topic>Agency</topic><topic>Agency theory</topic><topic>Closures</topic><topic>Comparative advantage</topic><topic>Corporate reorganization</topic><topic>Divestitures</topic><topic>Firm boundaries</topic><topic>Firm theory</topic><topic>Industrial plants</topic><topic>Mergers</topic><topic>Post-merger performance</topic><topic>Productivity</topic><topic>Restructuring</topic><topic>Selloffs</topic><topic>Studies</topic><topic>Target company</topic><topic>Theory of the firm</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Maksimovic, Vojislav</creatorcontrib><creatorcontrib>Phillips, Gordon</creatorcontrib><creatorcontrib>Prabhala, N.R.</creatorcontrib><collection>CrossRef</collection><collection>International Bibliography of the Social Sciences (IBSS)</collection><collection>International Bibliography of the Social Sciences</collection><collection>International Bibliography of the Social Sciences</collection><jtitle>Journal of financial economics</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Maksimovic, Vojislav</au><au>Phillips, Gordon</au><au>Prabhala, N.R.</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Post-merger restructuring and the boundaries of the firm</atitle><jtitle>Journal of financial economics</jtitle><date>2011-11-01</date><risdate>2011</risdate><volume>102</volume><issue>2</issue><spage>317</spage><epage>343</epage><pages>317-343</pages><issn>0304-405X</issn><eissn>1879-2774</eissn><coden>JFECDT</coden><abstract>We examine how firms redraw their boundaries after acquisitions using plant-level data. We find that there is extensive restructuring in a short period following mergers and full-firm acquisitions. Acquirers of full firms sell 27% and close 19% of the plants of target firms within three years of the acquisition. Acquirers with skill in running their peripheral divisions tend to retain more acquired plants. Retained plants increase in productivity whereas sold plants do not. These results suggest that acquirers restructure targets in ways that exploit their comparative advantage.
► We examine plant-level restructuring after mergers and acquisitions. ► Acquirers of full firms sell 27% and close 19% of the target-firm plants. ► Skilled acquirers retain more target plants, increasing productivity of these plants. ► Firms restructure targets to exploit their comparative advantage across industries.</abstract><cop>Amsterdam</cop><pub>Elsevier B.V</pub><doi>10.1016/j.jfineco.2011.05.013</doi><tpages>27</tpages><oa>free_for_read</oa></addata></record> |
| fulltext | fulltext |
| identifier | ISSN: 0304-405X |
| ispartof | Journal of financial economics, 2011-11, Vol.102 (2), p.317-343 |
| issn | 0304-405X 1879-2774 |
| language | eng |
| recordid | cdi_proquest_miscellaneous_905209284 |
| source | Elsevier ScienceDirect Journals Complete |
| subjects | Acquisitions Acquisitions & mergers Agency Agency theory Closures Comparative advantage Corporate reorganization Divestitures Firm boundaries Firm theory Industrial plants Mergers Post-merger performance Productivity Restructuring Selloffs Studies Target company Theory of the firm |
| title | Post-merger restructuring and the boundaries of the firm |
| url | https://sfx.bib-bvb.de/sfx_tum?ctx_ver=Z39.88-2004&ctx_enc=info:ofi/enc:UTF-8&ctx_tim=2025-01-04T20%3A20%3A07IST&url_ver=Z39.88-2004&url_ctx_fmt=infofi/fmt:kev:mtx:ctx&rfr_id=info:sid/primo.exlibrisgroup.com:primo3-Article-proquest_cross&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft.genre=article&rft.atitle=Post-merger%20restructuring%20and%20the%20boundaries%20of%20the%20firm&rft.jtitle=Journal%20of%20financial%20economics&rft.au=Maksimovic,%20Vojislav&rft.date=2011-11-01&rft.volume=102&rft.issue=2&rft.spage=317&rft.epage=343&rft.pages=317-343&rft.issn=0304-405X&rft.eissn=1879-2774&rft.coden=JFECDT&rft_id=info:doi/10.1016/j.jfineco.2011.05.013&rft_dat=%3Cproquest_cross%3E905209284%3C/proquest_cross%3E%3Curl%3E%3C/url%3E&disable_directlink=true&sfx.directlink=off&sfx.report_link=0&rft_id=info:oai/&rft_pqid=894330069&rft_id=info:pmid/&rft_els_id=S0304405X1100136X&rfr_iscdi=true |