Evaluating Horizontal Mergers in Swedish District Courts Using Plant Capacity Concepts: With a Focus on Nonconvexity

Kristiaan Kerstens and Xiaoqing Chen ()
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Xiaoqing Chen: School of Economics and Management, Southeast University, Nanjing, Jiangsu, China, and IESEG School of Management, 3 rue de la Digue, F-59000 Lille, France

No 2022-EQM-02, Working Papers from IESEG School of Management

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.

Keywords: : Data Envelopment Analysis; Free Disposal Hull; Plant capacity utilisation; Horizontal mergers and acquisitions (search for similar items in EconPapers)
JEL-codes: D24 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2022-05
New Economics Papers: this item is included in nep-com, nep-eff and nep-ind
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Evaluating horizontal mergers in Swedish district courts using plant capacity concepts: with a focus on nonconvexity (2022)
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