Foreign Acquisition and the Performance of New Zealand Firms

Richard Fabling and Lynda Sanderson

No 11/06, Treasury Working Paper Series from New Zealand Treasury

Abstract: This paper examines the firm-level determinants of foreign acquisitions of New Zealand companies, and the consequences for both the purchased firms and the workers within those firms. We follow a combined propensity score matching and difference-in- differences approach to identify and address endogenous selection of acquisition targets. The results suggest that foreign firms tend to target high-performing New Zealand companies. Acquired firms then exhibit higher growth in average wages and output, relative to similar domestic firms, but do not appear in general to increase their productivity or capital intensity. We find no evidence of differential survival rates for recently acquired foreign firms.

Keywords: Firm performance; foreign direct investment (FDI) (search for similar items in EconPapers)
JEL-codes: D22 F23 (search for similar items in EconPapers)
Pages: 28
Date: 2011-12
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://treasury.govt.nz/sites/default/files/2011-12/twp11-06.pdf (application/pdf)

Related works:
Journal Article: Foreign acquisition and the performance of New Zealand firms (2014)
Working Paper: Foreign acquisition and the performance of New Zealand firms (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nzt:nztwps:11/06

Access Statistics for this paper

More papers in Treasury Working Paper Series from New Zealand Treasury New Zealand Treasury, PO Box 3724, Wellington 6140, New Zealand. Contact information at EDIRC.
Bibliographic data for series maintained by CSS I&T Web & Publishing, The Treasury ().