The Perfect Match: Assortative Matching in International Acquisitions
This paper empirically characterizes the matching between firms in domestic and cross-border mergers and acquisitions (M&A). The analysis is guided by a theoretical framework constructed following the premises of the new trade theory. It assumes that firms are heterogeneous, within the industry and country of origin, in two characteristics: productivity and size. By a revealed preference argument, if an acquisition takes place, it signals the existence of synergies between the characteristics of two firms. We estimate the sources of synergies between merged firms based on data on domestic and international M&A for five large European countries, France, Germany, Italy, U.K., and Spain, collected by Zephyr between 1997 and 2011. The estimated model is used to compute the effect of FDI on the resulting host country productivity and size distribution of firms.
|Date of creation:||2013|
|Date of revision:|
|Contact details of provider:|| Postal: Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA|
Web page: http://www.EconomicDynamics.org/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Joel David, 2012. "The Aggregate Implications of Mergers and Acquisitions," 2012 Meeting Papers 1178, Society for Economic Dynamics.
- Yeaple, Stephen & Helpman, Elhanan & Melitz, Marc, 2004.
"Export versus FDI with Heterogeneous Firms,"
3229098, Harvard University Department of Economics.
- Blonigen, Bruce A. & Fontagné, Lionel & Sly, Nicholas & Toubal, Farid, 2014.
"Cherries for sale: The incidence and timing of cross-border M&A,"
Journal of International Economics,
Elsevier, vol. 94(2), pages 341-357.
- Bruce A. Blonigen & Lionel Fontagné & Nicholas Sly & Farid Toubal, 2014. "Cherries for Sale: The Incidence and Timing of Cross-Border M&A," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01162226, HAL.
- Ariel Burstein & Alexander Monge-Naranjo, 2007. "Foreign Know-How, Firm Control, and the Income of Developing Countries," NBER Working Papers 13073, National Bureau of Economic Research, Inc.
- Ellen R. McGrattan & Edward C. Prescott, 2007.
"Technology capital and the U.S. current account,"
646, Federal Reserve Bank of Minneapolis.
- Ellen R. McGrattan & Edward C. Prescott, 2009. "Technology capital and the U.S. current account," Staff Report 406, Federal Reserve Bank of Minneapolis.
- Ellen R. McGrattan & Edward C. Prescott, 2008. "Technology Capital and the U.S. Current Account," NBER Working Papers 13983, National Bureau of Economic Research, Inc.
- Ellen R McGrattan & Edward C Prescott, 2008. "Technology Capital and the U.S. Current Account," Levine's Bibliography 122247000000001827, UCLA Department of Economics.
- Edward Prescott & Ellen McGrattan, 2007. "Technology Capital and the U.S. Current Account," 2007 Meeting Papers 90, Society for Economic Dynamics.
- Andres Rodriguez-Clare & Natalia Ramondo, 2007.
"Trade, Multinational Production, and the Gains from Openness,"
2007 Meeting Papers
819, Society for Economic Dynamics.
- Natalia Ramondo & Andr�s Rodr�guez-Clare, 2013. "Trade, Multinational Production, and the Gains from Openness," Journal of Political Economy, University of Chicago Press, vol. 121(2), pages 273 - 322.
- Natalia Ramondo & Andrés Rodríguez-Clare, 2009. "Trade, Multinational Production, and the Gains from Openness," NBER Working Papers 15604, National Bureau of Economic Research, Inc.
- Nocke, Volker & Yeaple, Stephen, 2007. "Cross-border mergers and acquisitions vs. greenfield foreign direct investment: The role of firm heterogeneity," Journal of International Economics, Elsevier, vol. 72(2), pages 336-365, July.
When requesting a correction, please mention this item's handle: RePEc:red:sed013:1000. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christian Zimmermann)
If references are entirely missing, you can add them using this form.