Abstract
There have been many empirical studies regarding mergers in Japan’s paper industry from the standpoint of productivity and cost effectiveness. However, such studies only compared effectiveness based on data regarding existing companies. This article creates simulations of data on hypothetical mergers. A relative comparison will be made between such simulated data and the actual merger data regarding cost effectiveness using a data envelopment analysis (DEA). The results of the DEA efficiency analysis using such data show that, in mergers between large companies and midsized companies, in the long run, their efficiency tends to improve. A series of mergers in Japan’s paper industry, in general, can be positively evaluated since these mergers did not significantly reduce the cost-effective value of the surviving companies.
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