Foreign Ownership and Corporate Performance: The Czech Republic at EU Entry

Stepan Jurajda and Juraj Stancik

CERGE-EI Working Papers from The Center for Economic Research and Graduate Education - Economics Institute, Prague

Abstract: Does foreign ownership improve corporate performance or do foreign firms merely select more productive targets for takeover? Do workers benefit from foreign acquisitions? We answer these questions based on comparing the be- fore/after change in several performance indicators of Czech firms subject to foreign takeover after 1997, i.e., after the initial waves of privatization were completed, with the corresponding performance change of matched compa- nies that remain domestically owned until 2005. We find that the impact of foreign investors on domestic acquisitions is significantly positive only in non-exporting manufacturing industries, while it is small in both services and manufacturing industries competing on international markets.

Keywords: Productivity; foreign ownership; FDI (search for similar items in EconPapers)
JEL-codes: C23 D24 F2 (search for similar items in EconPapers)
Date: 2009-09
New Economics Papers: this item is included in nep-eff and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Journal Article: Foreign Ownership and Corporate Performance: The Czech Republic at EU Entry (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:cer:papers:wp389

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