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

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  • Joel Stiebale
  • Michaela Trax

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.

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Bibliographic Info

Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 44 (2011)
Issue (Month): 3 (August)
Pages: 957-990

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Handle: RePEc:cje:issued:v:44:y:2011:i:3:p:957-990

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Cited by:
  1. Stiebale, Joel, 2013. "The impact of cross-border mergers and acquisitions on the acquirers' R&D — Firm-level evidence," International Journal of Industrial Organization, Elsevier, vol. 31(4), pages 307-321.
  2. Joel Stiebale, 2014. "Cross-Border M&As and Innovative Activity of Acquiring and Target Firms," Discussion Papers 2014-06, University of Nottingham, GEP.
  3. Benjamin Furlan & Harald Oberhofer & Hannes Winner, 2014. "A Note on Merger and Acquisition Evaluation," WIFO Working Papers 462, WIFO.

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