Short and medium-term effects of foreign acquisitions on manufacturing firms: Evidence from Germany

Short and medium-term effects of foreign acquisitions on manufacturing firms: Evidence from Germany

This paper, for the first time, investigates the impact of foreign acquisitions on German manufacturing firms using, newly available unique administrative micro data spanning 25 years. Based on an event study design combined with propensity score matching techniques, we find that foreign acquisition...

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Veröffentlicht in:Economics letters 2024-08, Vol.241, p.1-6, Article 111826
Hauptverfasser: Görg, Holger, Lehr, Jakob
Format: Artikel
Sprache:eng
Schlagworte:
employment
Ex-post evaluation
experimental design
Firm behavior
Foreign acquisitions
Foreign direct investment
Germany
labor productivity
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Zusammenfassung:This paper, for the first time, investigates the impact of foreign acquisitions on German manufacturing firms using, newly available unique administrative micro data spanning 25 years. Based on an event study design combined with propensity score matching techniques, we find that foreign acquisitions significantly increase labor productivity and average wages in acquired firms. A reduction in employment drives both effects.
ISSN:1873-7374
0165-1765
DOI:10.1016/j.econlet.2024.111826