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

Joel Stiebale and Michaela Trax

No 159, Ruhr Economic Papers from RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen

Abstract: 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.

Keywords: Multinational firms; cross-border M&A; productivity; employment growth; investment (search for similar items in EconPapers)
JEL-codes: D24 F23 G34 L23 (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: The effects of cross-border M&As on the acquirers' domestic performance: firm-level evidence (2011)
Journal Article: The effects of cross‐border M&As on the acquirers’ domestic performance: firm‐level evidence (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:rwirep:159

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