The effects of cross-border M&As on the acquirers' domestic performance: firm-level evidence

Joel Stiebale and Michaela Trax

Canadian Journal of Economics, 2011, vol. 44, issue 3, 957-990

Abstract: This paper provides empirical evidence on the effects of cross-border mergers and acquisitions (M&As) on the acquiring firms' domestic performance in the U.K. and France. We build a new firm-level data set that combines a global M&A database with balance sheet data for the years 2000 to 2007. Combining matching techniques with a difference-in-differences estimator, we find that cross-border M&As boost on average acquirers' domestic sales and investment, and they are not accompanied by a downsizing of the domestic labour force in either country. Further, cross-border M&As 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 M&As and their resulting effects.

JEL-codes: F23 G34 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (30)

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Related works:
Journal Article: The effects of cross‐border M&As on the acquirers’ domestic performance: firm‐level evidence (2011)
Working Paper: The Effects of Cross-border M&As on the Acquirers' Domestic Performance – Firm-level Evidence (2010)
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