When do firms go in for growth by acquisitions?
Publicly trading companies in the UK indulge in acquisition activities as a means of expansion if they have enough excess funds as well as healthy ratings in the stock market. They evaluate the expected profits from acquisition activities depending on the kind of market they belong. It is deemed desirable when more profitable alternatives are unavailable. However, in markets with stiff competition, the costs of outbidding rivals usually marginalize benefits from the activity.
Publication Name: Oxford Bulletin of Economics & Statistics
The efficiency of firms: what difference does competition make?
An analysis of the effects of competition on the efficiency of firms reveals that the short-term reduction in market shares does induce firms to improve its efficiency relative to its 'best practice.' The study also reveals that long-term differences in efficiencies are directly related to difference in gross investment. The paper is an attempt to quantitatively analyze the theories that firms are pushed to maximize their efficiency in competitive environments.
Publication Name: Economic Journal
The investment behaviour of firms in an oligopolistic setting
An oligopolistic investment behavior model was developed and tested on 114 UK firms. The firms represent 15 manufacturing industries that are characterized as being either fragmented, dominant group or dominant firm sectors. Results indicate noncooperative behavior in fragmented sectors, competitive in dominant firm sectors and cooperative in dominant group sectors.
Publication Name: Journal of Industrial Economics
- Abstracts: Is the firm an individual? Organizations versus institutions
- Abstracts: Price uncertainty and consumer welfare in an intertemporal setting. Manufacturer liability for harms caused by consumers to others
- Abstracts: Fueling the engine of growth with investment in infrastructure: a lesson from neoclassical growth theory. Production and production functions: some implications of a refinement to process analysis
- Abstracts: Industry attractiveness, firm competence, and international investment performance in a transitional economy
- Abstracts: An exact solution for the investment and value of a firm facing uncertainty, adjustment costs, and irreversibility