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Do foreign mergers and acquisitions boost firm productivity?

Marc Schiffbauer, Iulia Siedschlag () and Frances Ruane ()

International Business Review, 2017, vol. 26, issue 6, 1124-1140

Abstract: This paper examines the causal relationship between foreign mergers and acquisitions (M&A) and the productivity of acquired firms using micro-data from the UK over the period 1999–2007. Our results suggest a significant heterogeneity in the total factor productivity (TFP) effects of foreign M&A at the industry level. Overall, we uncover a systematic pattern of post-acquisition TFP effects that is consistent with the most recent theoretical models of firm heterogeneity and cross-border mergers and acquisitions as mode of foreign entry. Furthermore, we find positive aggregate effects on labor productivity due to capital deepening but not due to changes in TFP.

Keywords: Cross-border mergers and acquisitions; Productivity; Firm heterogeneity (search for similar items in EconPapers)
JEL-codes: F23 D24 O33 (search for similar items in EconPapers)
Date: 2017
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Working Paper: Do Foreign Mergers and Acquisitions Boost Firm Productivity? (2009) Downloads
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