Do Foreign Mergers and Acquisitions Boost Firm Productivity?
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.
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| Main Authors: | , , |
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| Format: | Journal Article biblioteca |
| Published: |
Elsevier
2017-12
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| Subjects: | CROSS-BORDER MERGERS, ACQUISITIONS, PRODUCTIVITY, FIRM HETEROGENEITY, |
| Online Access: | http://hdl.handle.net/10986/29255 |
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