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

Görg, Holger; Lehr, Jakob

doi:doi:10.1016/j.econlet.2024.111826

Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/302104

Title:

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

Authors:

Görg, Holger
Lehr, Jakob

Year of Publication:

2024

Citation:

[Journal:] Economics Letters [ISSN:] 1873-7374 [Volume:] 241 [Article No.:] 111826 [Publisher:] Elsevier BV [Place:] Amsterdam [Year:] 2024 [Pages:] 1-6

Publisher:

Elsevier BV, Amsterdam

Abstract:

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.

Subjects:

Foreign direct investment
Foreign acquisitions
Firm behavior
Ex-post evaluation

JEL:

F23
F61

Persistent Identifier of the first edition:

doi:10.1016/j.econlet.2024.111826

Creative Commons License: