Foreign ownership and performance: evidence from a panel of Italian firms

Chiara Bentivogli and Litterio Mirenda

No 1085, Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: The paper studies the impact of foreign ownership on a firm’s economic performance. We use a unique panel dataset to test the foreign ownership premium by comparing our sample of firms based in Italy and owned by a foreign subject with a sample of purely domestic firms that, in order to have a proper counterfactual, were selected using propensity score matching. Our difference-in-differences results show the existence of a premium for the size, profitability and financial soundness of the foreign-owned companies. The premium increases with time, is concentrated in the service sector, and disappears if the foreign investor is based in a fiscal haven.

Keywords: multinational enterprise; ownership; foreign direct investment; firm performance (search for similar items in EconPapers)
JEL-codes: F23 F61 (search for similar items in EconPapers)
Date: 2016-10
New Economics Papers: this item is included in nep-cfn, nep-eff, nep-eur, nep-int and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Related works:
Chapter: Foreign ownership and performance: evidence from a panel of Italian firms (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:bdi:wptemi:td_1085_16

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