This paper reviews theories that identify motives for mergers, reviews recent empirical research, specifies a model that incorporates alternative motives, and tests the model with data from food manufacturing mergers between 1979 and 1986. Results suggest that capital markets are not efficient,...

An analysis of the impact of buyer structure on the profitability of U.S. food manufacturing industries shows inconclusive evidence in support of the countervailing power hypothesis in these industries. However, findings show that industries that have high sales to other food manufacturing...