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The effects of cross-border acquisitions on firms’ productivity in the EU

Author

Listed:
  • Wildmer Daniel Gregori

    (European Commission)

  • Maria Martinez Cillero

    (European Commission)

  • Michela Nardo

    (European Commission)

Abstract

This study empirically investigates the extent to which firms in the European Union, once acquired through a cross-border acquisition, show different productivity levels as compared to those firms that have not been acquired. Our identification strategy relies on the combination of Propensity Scores and the Staggered Difference-in-Difference estimator, using firms’ balance sheet for the years 2008-2018. We find that cross-border acquisitions decrease the productivity of the acquired firms, especially in the manufacturing sector, both high- and low-tech. We find evidence of origin and sector heterogeneity. Firms targeted by acquirers with ultimate owners originating in emerging market economies and Offshore Financial Centres also decrease productivity of target firms in high-tech manufacturing.

Suggested Citation

  • Wildmer Daniel Gregori & Maria Martinez Cillero & Michela Nardo, 2022. "The effects of cross-border acquisitions on firms’ productivity in the EU," Working Papers 2022.10, International Network for Economic Research - INFER.
    • Handle: RePEc:inf:wpaper:2022.10
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    References listed on IDEAS

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    More about this item

    Keywords

    Cross-border M&As; TFP; European Union; Propensity Score; DiD;
    All these keywords.

    JEL classification:

    • G - Financial Economics

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