Abstract

https://ssrn.com/abstract=2471296
 


 



Acquisitions, Productivity, and Profitability: Evidence from the Japanese Cotton Spinning Industry


Serguey Braguinsky


Carnegie Mellon University - Department of Social and Decision Sciences

Atsushi Ohyama


Hokkaido University - Graduate School of Economics & Business Administration

Tetsuji Okazaki


University of Tokyo - Faculty of Economics

Chad Syverson


University of Chicago Booth School of Business; National Bureau of Economic Research (NBER)

January 1, 2014

Chicago Booth Research Paper No. 14-26

Abstract:     
We explore how changes in ownership affect the productivity and profitability of producers. Using detailed data from the Japanese cotton spinning industry at the turn of the last century, we find that acquired firms’ production facilities were not on average less physically productive than the plants of the acquiring firms before acquisition. They were much less profitable, however, due to higher inventory levels and lower capacity utilization — differences that reflected problems in managing the uncertainties of demand. After acquisitions, less profitable acquired plants saw drops in inventories and gains in capacity utilization that raised both their productivity and profitability levels.

Number of Pages in PDF File: 48


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Date posted: July 26, 2014 ; Last revised: June 20, 2015

Suggested Citation

Braguinsky, Serguey and Ohyama, Atsushi and Okazaki, Tetsuji and Syverson, Chad, Acquisitions, Productivity, and Profitability: Evidence from the Japanese Cotton Spinning Industry (January 1, 2014). Chicago Booth Research Paper No. 14-26. Available at SSRN: https://ssrn.com/abstract=2471296 or http://dx.doi.org/10.2139/ssrn.2471296

Contact Information

Serguey Braguinsky
Carnegie Mellon University - Department of Social and Decision Sciences ( email )
Pittsburgh, PA 15213-3890
United States
Atsushi Ohyama
Hokkaido University - Graduate School of Economics & Business Administration ( email )
Kita-ku Kita 9 Nishi 7
Sapporo, Hokkaido, 060
Japan
Tetsuji Okazaki
University of Tokyo - Faculty of Economics ( email )
7-3-1 Hongo, Bunkyo-ku
Tokyo 113-0033
Japan
Chad Syverson (Contact Author)
University of Chicago Booth School of Business ( email )
1126 East 59th Street
Chicago, IL 60637
United States
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
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