This article reports the results of research and analysis undertaken by the authors. It has undergone a more limited review than official publications. The article has been screened to insure that no confidential data are revealed. The judgments and conclusions herein are those of the authors and do not necessarily reflect those of the U.S. Bureau of the Census or U.S. Department of Agriculture. The authors are responsible for any remaining errors.
Mergers and acquisitions, employment, wages, and plant closures in the U.S. meat product industries†
Article first published online: 8 JAN 2009
© 2009 Wiley Periodicals, Inc.
Volume 25, Issue 1, pages 70–89, Winter 2009
How to Cite
Nguyen, S. V. and Ollinger, M. (2009), Mergers and acquisitions, employment, wages, and plant closures in the U.S. meat product industries. Agribusiness, 25: 70–89. doi: 10.1002/agr.20186
- Issue published online: 8 JAN 2009
- Article first published online: 8 JAN 2009
The purpose of this article is to evaluate the impact of mergers and acquisitions (M&As) on wages, employment, and plant closures in the meat packing, prepared meat products, and poultry slaughter and processing industries during two merger periods, 1977–1987 and 1982–1992. The analysis relies on two balanced panel datasets of all plants owned by meat and poultry firms that existed in the 1977 Census of Manufacturing and survived until 1987 and another dataset of plants that existed in 1982 and survived until 1992. We find that (a) M&As are positively associated with wages in the meat packing and prepared meat products industries during 1977–1987, but not during 1982–1992; (b) changes in employment are positively related to M&As in all three meat and poultry industries during 1977–1987, but only in the poultry industry during 1982–1992; and (c) M&As are generally negatively associated with plant closures [EconLit. Citations: J630]. © 2009 wiley Periodicals, Inc.