IMPACT OF VERTICAL MERGERS ON FOOD INDUSTRY PROFITABILITY: AN EMPIRICAL EVALUATION

Bhuyan, Sanjib

doi:10.22004/ag.econ.20469

IMPACT OF VERTICAL MERGERS ON FOOD INDUSTRY PROFITABILITY: AN EMPIRICAL EVALUATION

Vertical integration is an important business strategy among firms in the U.S. food industries. Our objective is to test one of the perceived benefits of vertical integration - improved profitability of the integrated firm. Findings show that increased vertical mergers in food industries would lower profits.

Keywords:

vertical integration ; mergers ; market performance ; industry profitability

Subject(s):

Agribusiness
Industrial Organization

Issue Date:

2001

Publication Type:

Conference Paper/ Presentation

DOI and Other Identifiers:

10.22004/ag.econ.20469

Record Identifier:

https://ageconsearch.umn.edu/record/20469