TY - JOUR

T1 - The impact of foreign takeovers: comparative evidence from foreign and domestic acquisitions in Germany

AU - Weche Gelübcke, John Philipp

PY - 2015/2/13

Y1 - 2015/2/13

N2 - This study provides the first evidence of foreign takeover effects on the performance of acquired firms in Germany that considers a general takeover effect through the comparison with domestic takeovers. A propensity score matching approach combined with a difference-in-differences (DiD) estimator were performed with new high-quality panel data for manufacturing enterprises, provided by German official statistics. The results indicate a negative impact of foreign takeovers on employment and no productivity improvements for the period 2007–2009. This evidence contradicts existing empirical evidence for Germany which suggests significant productivity improvements and no changes in terms of employment. These findings are of particular interest to Germany as one of the most important FDI inflow destinations worldwide. They contribute to the foreign ownership performance premium literature as well as improving the understanding of foreign acquisition consequences, a subject of utmost topicality.

AB - This study provides the first evidence of foreign takeover effects on the performance of acquired firms in Germany that considers a general takeover effect through the comparison with domestic takeovers. A propensity score matching approach combined with a difference-in-differences (DiD) estimator were performed with new high-quality panel data for manufacturing enterprises, provided by German official statistics. The results indicate a negative impact of foreign takeovers on employment and no productivity improvements for the period 2007–2009. This evidence contradicts existing empirical evidence for Germany which suggests significant productivity improvements and no changes in terms of employment. These findings are of particular interest to Germany as one of the most important FDI inflow destinations worldwide. They contribute to the foreign ownership performance premium literature as well as improving the understanding of foreign acquisition consequences, a subject of utmost topicality.

KW - Economics

KW - foreign takeover

KW - manufacturing

KW - post-acquisition performance

KW - treatment analysis

UR - http://www.scopus.com/inward/record.url?scp=84919842275&partnerID=8YFLogxK

U2 - 10.1080/00036846.2014.982854

DO - 10.1080/00036846.2014.982854

M3 - Journal articles

VL - 47

SP - 739

EP - 755

JO - Applied Economics

JF - Applied Economics

SN - 0003-6846

IS - 8

ER -