The Effects of Cross-border M&As on the Acquirers' Domestic Performance – Firm-level Evidence

Arbeitspapier

This paper provides empirical evidence on the effects of cross-border M&As on investing firms' domestic performance in the U.K. and France. We build a new firm-level dataset that combines a global M&A database with balance sheet data for the years 2000-2007. Combining matching techniques with a difference-in-differences estimator, we find that cross-border deals boost on average domestic employment, sales, and investment, and they are not accompanied by a downsizing of the domestic labor force in neither of both countries. Further, acquisitions in knowledge-intensive industries lead to improvements in domestic productivity. Our results display some heterogeneity across industries and types of acquisitions, suggesting a connection between the motives for international acquisitions and their resulting effects.

Object Details

• ISBN: 978-3-86788-178-4
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Ruhr Economic Papers ; No. 159

Classification and Topics

• Classification: Wirtschaft ; Multinational Firms; International Business ; Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance ; Organization of Production ; Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
• Subject: Multinational firms ; cross-border M&A ; productivity ; employment growth ; investment ; Multinationales Unternehmen ; Übernahme ; Direktinvestition ; Produktivität ; Beschäftigungseffekt ; Großbritannien ; Frankreich

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Stiebale, Joel ; Trax, Michaela
• Event: Veröffentlichung
• (who): Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI)
• (where): Essen
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/37013
• Last update: 10.03.2025, 11:45 AM CET