Foreign and Domestic Takeovers in Germany: Cherry-picking and Lemon-grabbing

Research output: Working paperWorking papers

Standard

Foreign and Domestic Takeovers in Germany: Cherry-picking and Lemon-grabbing. / Weche Gelübcke, John Philipp.
Lüneburg: Institut für Volkswirtschaftslehre der Universität Lüneburg, 2012. (Working Paper Series in Economics; No. 240).

Research output: Working paperWorking papers

Harvard

Weche Gelübcke, JP 2012 'Foreign and Domestic Takeovers in Germany: Cherry-picking and Lemon-grabbing' Working Paper Series in Economics, no. 240, Institut für Volkswirtschaftslehre der Universität Lüneburg, Lüneburg.

APA

Weche Gelübcke, J. P. (2012). Foreign and Domestic Takeovers in Germany: Cherry-picking and Lemon-grabbing. (Working Paper Series in Economics; No. 240). Institut für Volkswirtschaftslehre der Universität Lüneburg.

Vancouver

Weche Gelübcke JP. Foreign and Domestic Takeovers in Germany: Cherry-picking and Lemon-grabbing. Lüneburg: Institut für Volkswirtschaftslehre der Universität Lüneburg. 2012. (Working Paper Series in Economics; 240).

Bibtex

@techreport{cbac17db7b4f4285a444e929a580b50f,
title = "Foreign and Domestic Takeovers in Germany: Cherry-picking and Lemon-grabbing",
abstract = "This study focuses on ex ante performance of domestic and foreign takeover targets in Germany, one of the most important FDI infl ow destinations worldwide. Using a new database from German offcial statistics, unconditional comparisons as well as binary response model estimations of takeover probabilities were performed for the manufacturing and service sector separately. The results showed a diametrically opposing impact of productivity and profitability on the takeover likelihood. This offers a conciliation of two supposedly opponent hypotheses, known as 'cherry-picking' and 'lemon-grabbing'. The results advocate assumptions of asset-exploiting and information asymmetries in favor of domestic investors but differ only marginally between foreign and domestic targets.",
keywords = "Economics, foreign ownership, Germany, acquisition, firm performance, services, inward FDI, multinational firms, productivity",
author = "{Weche Gel{\"u}bcke}, {John Philipp}",
year = "2012",
language = "English",
series = "Working Paper Series in Economics",
publisher = "Institut f{\"u}r Volkswirtschaftslehre der Universit{\"a}t L{\"u}neburg",
number = "240",
type = "WorkingPaper",
institution = "Institut f{\"u}r Volkswirtschaftslehre der Universit{\"a}t L{\"u}neburg",

}

RIS

TY - UNPB

T1 - Foreign and Domestic Takeovers in Germany: Cherry-picking and Lemon-grabbing

AU - Weche Gelübcke, John Philipp

PY - 2012

Y1 - 2012

N2 - This study focuses on ex ante performance of domestic and foreign takeover targets in Germany, one of the most important FDI infl ow destinations worldwide. Using a new database from German offcial statistics, unconditional comparisons as well as binary response model estimations of takeover probabilities were performed for the manufacturing and service sector separately. The results showed a diametrically opposing impact of productivity and profitability on the takeover likelihood. This offers a conciliation of two supposedly opponent hypotheses, known as 'cherry-picking' and 'lemon-grabbing'. The results advocate assumptions of asset-exploiting and information asymmetries in favor of domestic investors but differ only marginally between foreign and domestic targets.

AB - This study focuses on ex ante performance of domestic and foreign takeover targets in Germany, one of the most important FDI infl ow destinations worldwide. Using a new database from German offcial statistics, unconditional comparisons as well as binary response model estimations of takeover probabilities were performed for the manufacturing and service sector separately. The results showed a diametrically opposing impact of productivity and profitability on the takeover likelihood. This offers a conciliation of two supposedly opponent hypotheses, known as 'cherry-picking' and 'lemon-grabbing'. The results advocate assumptions of asset-exploiting and information asymmetries in favor of domestic investors but differ only marginally between foreign and domestic targets.

KW - Economics

KW - foreign ownership

KW - Germany

KW - acquisition

KW - firm performance

KW - services

KW - inward FDI

KW - multinational firms

KW - productivity

M3 - Working papers

T3 - Working Paper Series in Economics

BT - Foreign and Domestic Takeovers in Germany: Cherry-picking and Lemon-grabbing

PB - Institut für Volkswirtschaftslehre der Universität Lüneburg

CY - Lüneburg

ER -

Documents