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The vertical integration phenomenon attracts the §attention of many of the theorists by being at the §intersection of the theories of firm, contracts and §markets. Vertical integration process will affect §the companies integrated mainly in terms of §profitability, efficency, and market share. This §book aims to analyze the effects of vertical §integration on profitability. A case study is used §to test these effects. For this purpose, pre-§existing studies are analyzed and a simple §econometric model is established. Ordinary Least §Squares technique is used to estimate the regression §model. The analysis should help shed some light on §the relations between vertical integration and §profitability, and should be useful for §professionals or anyone else who may be interested §in Merger & Acquisition processes.
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