On Productivity and Plant Ownership Change: New Evidence from the Longitudinal Research Database

McGuckin, Robert H.; Nguyen, Sang V.

doi:10.2307/2555916

Cited by 234 publications

(173 citation statements)

References 29 publications

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“…If so, plants acquired through 'brownfield' investment will be a selfselected group of the population of plants. Empirical evidence in support of this proposition is provided by HARRIS and ROBINSON (2003) and MCGUCKIN and NGUYEN (1995). However, there may be problems associated with 'brownfield' investment.…”

Section: 'Non-place' Effectsmentioning

confidence: 94%

The sources of the Scotland–Rest of the UK productivity gap: implications for policy

Harris

Moffat

2016

Regional Studies

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The full-text may be used and/or reproduced, and given to third parties in any format or medium, without prior permission or charge, for personal research or study, educational, or not-for-prot purposes provided that:• a full bibliographic reference is made to the original source • a link is made to the metadata record in DRO • the full-text is not changed in any way The full-text must not be sold in any format or medium without the formal permission of the copyright holders.Please consult the full DRO policy for further details. ABSTRACTThis paper finds that aggregate total factor productivity in Scotland was 16% below the 'rest of the UK' in 2012. This is mainly due to negative 'non-place' effects in the service sector. It is also found that new plant start-ups and foreign-owned plants contributed negatively to TFP growth during 1997-2012. This casts doubt on whether continuing to focus on increasing the rate of new firm formation and foreign investment will result in a 'step-change' in productivity growth.

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Section: 'Non-place' Effectsmentioning

confidence: 94%

The sources of the Scotland–Rest of the UK productivity gap: implications for policy

Harris

Moffat

2016

Regional Studies

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“…Both Lichtenberg and Siegel (1987) and McGuckin and Nguyen (1995) report that ownership change is followed by increases in plant-level productivity growth. Healy, Palepu and Ruback (1992) examine operating performance following mergers and conclude that "merger firms have increases in post-merger operating cash flow returns in comparison with their industries.…”

Section: Literature Review and Conceptual Frameworkmentioning

confidence: 99%

Survivorship and the Economic Grim Reaper

Baker¹

2002

Journal of Law, Economics, and Organization

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The ten year survival rate for firms trading on the New York and American Stock Exchanges between 1963 and 1995 is only 61%. This paper explores the process by which firms come to be delisted. We calculate the returns of firms from ten years before delisting to their delisting date and show that, on average, the economic grim reaper kills poorly performing firms. We document takeover and distress delisting rates through time, analyze pre-delisting equity market returns for both groups, and explore how firm characteristics and regulations governing corporate takeovers and bankruptcy affect the friction with which these processes operate. We believe this is the first analysis to document long-term equity market and operating performance of delisting firms. The study builds on research from both finance and industrial organization and is consistent with a Schumpeterian view of economic development.Baker 2

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“…Productivity has also been used to gauge firm performance in the corporate finance literature [e.g. Schoar (2002), Maksimovic and Phillips (2002), McGuckin and Nguyen (1995), Imrohoroglu and Tüzel (2011)], the management accounting literature [Kaplan (1983)], and the literature on corporate control [Köke and Renneboog (2005)]. It is an important determinant of how firms react to business cycle fluctuations.…”

Section: Introductionmentioning

confidence: 99%

When does leverage hurt productivity growth? A firm-level analysis

Coricelli

Driffield

Pal

et al. 2012

Journal of International Money and Finance

100

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Abstract:In the wake of the global financial crisis, several macroeconomic contributions have highlighted the risks of excessive credit expansion. In particular, too much finance can have a negative impact on growth. We examine the microeconomic foundations of this argument, positing a non-monotonic relationship between leverage and firm-level productivity growth in the spirit of the trade-off theory of capital structure. A threshold regression model estimated on a sample of Central and Eastern European countries confirms that TFP growth increases with leverage until the latter reaches a critical threshold beyond which leverage lowers TFP growth. This estimate can provide guidance to firms and policy makers on identifying "excessive" leverage. We find a similar non-monotonic relationship between leverage and proxies for firm value. Our results are a first step in bridging the gap between the literature on optimal capital structure and the wider macro literature on the finance-growth nexus.

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On Productivity and Plant Ownership Change: New Evidence from the Longitudinal Research Database

Cited by 234 publications

References 29 publications

The sources of the Scotland–Rest of the UK productivity gap: implications for policy

The sources of the Scotland–Rest of the UK productivity gap: implications for policy

Survivorship and the Economic Grim Reaper

When does leverage hurt productivity growth? A firm-level analysis

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