The material contained herein is supplementary to the article named in the title and published in the American Journal of Agricultural Economics, Volume 88, Number 3, August 2006.Industrial Organization, Livestock Production/Industries,

Nguyen, Sang V.

Ollinger, Michael

English

Research Papers in Economics

 
 
 
 
 
 
AJAE APPENDIX: MERGERS AND ACQUISITIONS AND PRODUCTIVITY IN 
THE U.S. MEAT PRODUCTS INDUSTRIES: EVIDENCE  
FROM THE MICRO DATA 
 
 
 
 
by 
 
Sang V. Nguyen 
 
and 
 
Michael Ollinger 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The material contained herein is supplementary to the article named in the title and 
published in the American Journal of Agricultural Economics 1
Table 1: Average Initial Relative Labor Productivity (RLP82): 1982 – 92.
______________________________________________________________________________
Type of Plants Meat Packing Prepared Meat Poultry Slaughter
Products and Processing
______________________________________________________________________________
Number  RLP82 Number   RLP82 Number   RLP82
of plants of plants of plants
______________________________________________________________________________
Acquired plants (1982-87)        226      1.5024 353      1.1352 316 0.9539
  Kept in 1992 145      1.5552 195 1.1705 191 0.9903
  Sold by 1992 21 1.1329             60     1.0035   43 0.8234
  Closed by 1992 60 1.5934             98     1.1456  82 0.9377
______________________________________________________________________________
Buying firms’ plants (1982)       315      1.6308   580 1.4940 560 1.1227
   Kept in 1992 195      2.1961 276 1.6947 271 1.3092
   Sold before 1992  33 1.6588 103 1.4896  83 0.9583
   Closed by 1992  87 1.6670 202 1.2146 206 0.7786
_____________________________________________________________________________
Non-buying firm’s plants (1982) 1,326 0.7646 1,155 0.7134 359 0.8518
   Kept in 1992 541 0.7691 598 0.6913 180 0.8549
     Sold before 1992 (D) 1.8034 (D) 1.2392  (D) 0.8668
  Closed by 1992 (D) 0.7248 (D) 0.7528 (D) 0.8061
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All Plants 1,867 1.0000 2,088  1.0000 1,235 1.0000
______________________________________________________________________________
Source:  These averages were calculated by the authors, using data from the Longitudinal
Research Database of the U.S. Bureau of the Census.2
 Table 2: Probit Regressions of Acquisitions over 1977-82 and 1982-87
a
______________________________________________________________________________
Meat Packing Prepared Meat Products  Poultry Slaughter &
 Processing
______________________________________________________________________________
1977-82 1982-87 1977-82 1982-87 1977-82 1982-87
______________________________________________________________________________
Intercept -2.417 -2.293
** -3.312
** -2.267
** -2.773
** -2.486
**
(116.13) (102.27) (293.67 (99.76) (137.63) (116.45)
Log(P) 0.568
** (0.634
**. 0.288
** 0.623
** 0.788
* 0.139
**
(41.68) (36.82) (15.08) (34.52) (3.76) (1.55)
Log (S) 0.227
** 0.235
** 0.273
** 0.231
** 0.268
** 0.254
**
(439.63) (369.10) (830.35) (349.90) (646.28) (462.06)
Log(SR) -0.040 -0.067 0.181
** -0.068 0.110
* 0.073
+
(0.73) (2.04) (19.46) (2.09) (4.98) (2.34)
OM 0.845
** 0.854
**   0.521
**   0.850
**   0.689
**   0.614
**
(477.19) (469.56) (227.14) (464.28) (343.02) (277.48)
NF 0.812 0.807
**   0.501
**   0.850
**   0.335
**   0.324
**
(295.86) (281.66) (142.85) (279.50) (54.16) (49.00)
MULTI 0.331
**   0.271
**   0.209   0.276
**   0.001   -0.029
(43.41) (27.45) (22.65) (28.28) (0.00) (0.33)
Log(P)•Log(S) -0.054
**   -0.064
**   0.036
* -0.062
**   0.041
*   0.058
**
(9.64) (9.98) (5.14) (9.07) (4.98) (8.82)
Log(P)•OM -0.310
**   -0.336
**   -0.392
** 0.332
** -0.275
**   -0.269
**
(32.04) (35.35) (64.46) (34.52) (18.73) (17.89)
Log(P)•NF -0.173
**   -0.181
**   -0.686
** -0.177
** -0.909
**   -0.906
**
(5.79) (6.15) (93.74) (5.87) (119.44) (115.59)
______________________________________________________________________________
      N 1,867 1,336 2,078 1,295 1,207 1,067
Note: +, *, ** denote “significant” at the 10, 5 and 1 percent level, respectively.
a    Truncated sample; χ
2 in parentheses.3
Table A.3  The Probability of Being Acquired by Plant Size and Productivity in the
Prepared Meat Products Industry.
a
______________________________________________________________________________
Percentile and  -------------------Percentile of Plant Employment------------------
value of relative 10 25 50 75 90 95 Mean
labor productivity -------------Number of Plant Employees 1977 and 1982--------------------
for 1977 and 1982  2   7  32  94 258 420 105
4 12 36 114 337 561 130
----------------Probability of being acquired in percentages-----------------
10 percentile
1977: 0.413 0.35 0.87 2.29 4.21  7.04  8.85 4.47
1982: 0.352 0.89 2.12 4.57 9.17 16.01 20.17 9.87
25 percentile
1977: 0.619 0.52 1.15 3.12 5.79 9.66 12.12 6.14
1982: 0.529 1.15 2.57 5.22 9.98 16.80 20.86 10.69
50 percentile
1977: 0.892 0.56 1.48 4.08 7.60 12.63 15.77 8.06
1982: 0.882 1.57 3.23 6.15 11.07 17.83 21.76    11.79
75 percentile
1977: 1.059 0.62 1.65 4.59 8.55 14.17 17.64 9.06
1982: 1.335 2.00 3.88 6.99 12.02 18.69 22.50 12.74
90 percentile
1977: 1.505 0.76 2.07 5.83 10.83 17.79 22.01 11.48
1982: 1.978  2.50 4.58 7.87 12.97 19.53 23.21 13.68
95 percentile
1977: 1.877 0.86 2.38 6.73 12.47 20.34 25.04 13.20
1982: 2.558 2.88 5.09 8.48 13.62 20.09 23.69 14.33
Mean
1977: 0.947  0.58 1.53 4.25 7.91 13.13 16.38 8.38
1982: 1.055 1.74 3.50 6.50 11.48 18.20 22.07 12.19
______________________________________________________________________________
a Probability estimates are based on the parameter estimates of the non-linear probit model.4
Table A.4:  The Probability of Being Acquired by Plant Size and Productivity in the
Poultry Slaughter and Processing Industry.
a
______________________________________________________________________________
Percentile and  -------------------Percentile of Plant Employment------------------
value of relative 10 25 50 75 90 95 Mean
labor productivity -------------Number of Plant Employees 1977 and 1982--------------------
for 1977 and 1982  7 22 73 227 475 739 189
8 26 88 253 547 853 223
----------------Probability of being acquired in percentages-----------------
10 percentile
1977: 0.564 1.06 2.28 4.63 8.38 11.80 14.28 7.64
1982: 0.553 1.62 3.62 7.11 12.90 18.26 21.38 12.13
25 percentile
1977: 0.818 1.37 2.99 6.12 11.05 15.47 18.62 10.08
1982: 0.820 3.12 6.21 10.99 18.16 24.31 27.75 17.24
50 percentile
1977: 1.037 1.60 3.53 7.25 13.03 18.15 21.77 11.91
1982: 1.157 5.25 9.49 15.43 23.69 30.35 33.95    22.66
75 percentile
1977: 1.514 2.05 4.56 9.37 16.70 23.02 27.38 15.29
1982: 1.617 8.28 13.70 20.76 29.85 36.79 40.44 28.76
90 percentile
1977: 2.268 2.63 5.91 12.11 21.28 28.93 34.08 19.54
1982: 2.369  13.18 19.94 28.02 37.66 44.63 48.18 36.54
95 percentile
1977: 2.964 3.09 6.96 14.21 24.68 33.21 38.82 22.72
1982: 3.193 18.19 25.83 34.44 41.16 50.92 54.29 43.05
Mean
1977: 1.268  1.84 4.08 8.44 15.04 20.84 24.87 13.76
1982: 1.358 6.57 11.36 17.86 26.55 33.38 37.02 25.45
______________________________________________________________________________
aProbability estimates are based on the parameter estimates of the non-linear probit model.5
Table A5. Productivity Growth Regressions over 1977-87 and 1982-92.
a
_____________________________________________________________________________
Variables Meat Packing Prepared Meat Products Poultry Slaughter & Processing
______________________________________________________________________________
1977-87 1982-92 1977-87 1982-92 1977-87 1982-92
______________________________________________________________________________
Intercept  -0.562
** -0.592
** -0.661
* -0.226
* 0.307
** 0.059
(12.23) (7.47) (5.50) (3.34) (2.58) (0.51)
Log (P)    -0.822
** 0.420
* -1.173
** -0.714
* 0.114 0.211
*
(14.25) (5.54) (7.73) (10.84) (0.90) (1.96)
Log (S)    0.111
** 0.099
** 0.127
** 0.026 -0.068
** -0.007
(7.38)   (4.54) (3.83) (1.28) (2.41) (0.029)
Pr(AC)    0.964
**  0.665
** 2.285
** 0.372 -0.621 0.034
(3.77) (1.46) (3.35) (0.82) (1.44) (0.08)
Δ(K/Q)    -0.435
** -0.572
** 0.493
** -0.529 -0.581
** -0.544
**
(6.48) (8.84) (6.19) (8.24) (7.33) (7.47)
Δ(NW/PW)   -0.114
** 0.040 -0.090
** 0.006 -0.087
* 0.002
(3.83) (1.80) (3.16) (0.27) (2.13) (0.08)
Age2    -0.080
* -0.033 -0.010 -0.042 -0.010 -0.061
(2.19) (0.68) (0.20) (1.07) (0.19) (1.11)
Age3        ---- 0.071 ---  -0.059 ---- 0.099
   (1.21) (1.30)    (1.48)
MULTI   0.077 0.182
** 0.088 0.108
* -0.041 -0.006
                             (1.36)     (2.65) (1.49) (2.00) (0.69) (0.09)
O   0.551
** 0.026 -0.074 -0.010 0.225 -0.339
**
                             (3.82) (0.15) (0.21) (0.07) (1.45) (2.55)
OM 0.092 0.224
** -0.000 0.225
** -0.055 -0.210
**
                             (1.38) (2.93) (0.00) (3.59) (0.87) (3.79)
NF -0.066 -0.038 0.142 0.009 -0.152 -0.021
                             (0.85) (0.41) (1.00) (0.12) (1.78) (0.32)
Log (P)•Log(S)   0.114
** 0.014 0.164
** -0.075
** -0.114
** -0.030
                             (7.43) (0.81) (4.40) (5.00) (4.11) (1.31)
Pr (AC)•Log(S)   -0.200
** -0.166
* -0.421
** -0.082 -0.116
** -0.060
                             (4.12) (1.20) (3.45) (1.16) (4.21) (0.09)
Log (S) • O -0.107
**  -0.014 -0.013 -0.010 0.177
** 0.058
**
                             (3.69) (0.42) 0.20) (0.36)  (2.19) (2.30)
______________________________________________________________________________
R-square         0.35 0.23  0. 33 0.36 0.32 0.24
N         923 844 658 1,036 555 610
______________________________________________________________________________
Note: * and ** denote “significant” at the 5% and 1% level, respectively.
a Whole sample, includes all plants; t-statistics in parentheses.

AJAE Appendix: Mergers and Acquisitions and Productivity in the U.S. Meat Products Industries

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